French stocks appreciated on Friday, buoyed by indications of a slowdown in the U.S. labor market, which has reignited anticipation for U.S. interest rate cuts within the year. Investor mood was further lifted by the Bank of England's dovish stance on interest rates recorded on Thursday as well as growth in the U.K. Gross Domestic Product (GDP) which outperformed expectations.
The U.K. economy moved out of a technical recession in the first quarter, with its performance stronger than anticipated, spurred by a recovery in service output and household expenditure. Preliminary estimates from the Office for National Statistics revealed that the Gross Domestic Product expanded 0.6 percent from the fourth quarter, which witnessed a contraction of 0.3 percent. Economists had projected the first quarter growth to be around 0.4 percent.
The trend of increased market performance continued, with the CAC 40, the French stock market index, rising by 58 points— equivalent to 0.7 percent— clocking in at 8,245, following a similar 0.7 percent surge marked on Thursday.
