French stock markets experienced a decline on Wednesday, driven by apprehensions over sustained higher interest rates due to increasing bond yields.
On a more stable note, consumer confidence in France remained unchanged in May, though it persists at a level significantly lower than its historical average, as per monthly survey data from the statistical office INSEE.
The consumer sentiment index held steady at 90.0 in May, mirroring April's figure. This was contrary to economists' expectations, who had anticipated a rise to 91.
The CAC 40, France's benchmark stock index, fell 46 points, or 0.6%, to stand at 8,011, following a 0.9% decline the previous day.
The U.S. dollar gained strength amid higher yields, as investor expectations for U.S. rate cuts this year began to wane.
This week, investors are focused on key inflation reports from both Europe and the U.S. for guidance on future central bank policies.
Although the European Central Bank is expected to cut interest rates next week, the likelihood of additional cuts this year appears diminished.
