Stronger-than-anticipated inflation readings have rekindled expectations of rate cuts from the European Central Bank (ECB) and, coupled with optimism for economic revival in China following recent stimulus measures, have driven the CAC-40 higher in Friday’s trading.
Newly released data earlier today revealed that the preliminary inflation rate for September stands at 1.2 percent, below the 1.6 percent anticipated by markets. This follows a rate of 1.8 percent reported last month.
The CAC-40 is currently trading at 7,770.46, marking a 0.37 percent increase from its previous close of 7,742.09. The trading range for the day has been between 7,743.88 and 7,779.61. Among the 40 components of the index, only 12 are trading below the flatline.
Leading the gains among China-focused luxury businesses, Kering surged by 5.1 percent. STMicroelectronics followed closely with a rise of 4.5 percent. Renault, Stellantis, and Teleperformance also saw significant gains, each climbing by more than 3 percent during the day's trading.
Conversely, Schneider Electric, Dassault Systèmes, and Safran experienced a dip, each falling by more than 1 percent. Additionally, AXA and Publicis Groupe declined by over 0.75 percent.
The EUR/USD pair has decreased by 0.15 percent, currently trading at 1.1159, within a range of 1.1179 to 1.1125. Meanwhile, the EUR/GBP pair inched up by 0.05 percent to 0.8336, while the EUR/JPY pair dropped by 1.32 percent to 159.74.
Reflecting a broader trend of softening global bond yields, France's ten-year bond yields have declined by 2.6 percent to 2.895 percent, down from 2.973 percent the previous day.
