CAC Edges Lower On Weak Eurozone Economic Data

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(RTTNews.com) - The French stock market is edging lower on Thursday, with investors largely refraining from making significant moves after the U.S.Federal Reserve raised interest rate by 25 basis points on Wednesday and hinted at one more hike in December and three in the coming year.

Data showing economic confidence in Eurozone to have weakened further in September is weighing on markets in Europe.

The benchmark CAC 40 index is down 17.30 points, or 0.31 percent, at 5,495.43. On Wednesday, the index ended with a gain of 0.61 percent.

Among the losers, ST Microelectronics is declining 2.6 percent. Valeo, BNP Paribas, Societe Generale, Capgemini, Airbus Group, Peugeot and Arcelor Mittal are lower by 1 to 1.7 percent.

Meanwhile, Essilor International, Total, Sodexo, Publicis Groupe, Sanofi, Orange, Accor and Kering are up in positive territory with modest gains.

In economic news, survey data from European Commission showed Eurozone economic confidence weakened further in September, dropping to 110.9 in the month, from 111.6 in August. The score was forecast to fall to 111.2.

The decrease in sentiment resulted from lower confidence levels in the industry sector and among consumers, which were only partly offset by increases in the retail trade and construction sectors.

The industrial confidence index slid to 4.7 from 5.6 in August. The decline resulted from a marked decrease in managers' production expectations and a smaller worsening of their assessment of the stocks of finished products.

Similarly, the consumer sentiment index declined to -2.9, in line with flash estimate, from -1.9 a month ago. The decrease reflected a broad-based deterioration in all its components.

The rise in retail trade confidence index to 2.7 from 1.9 was driven by more positive views on the present business situation and the adequacy of the volume of stocks.

The marked increase in construction confidence to 8.3 from 6.4 resulted from a substantial improvement in managers' assessment of the level of order books and a moderate increase in their employment expectations.

Another report from EU showed that the business climate index remained unchanged at +1.21 in September. Managers' production expectations as well as their views on the stocks of finished products worsened in September.

By contrast, managers' appraisals of their overall order books, past production and export order books improved slightly.

Read the original article on RTTNews (http://www.rttnews.com/2938630/cac-edges-lower-on-weak-eurozone-economic-data.aspx)

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This article appears in: Stocks , World Markets , Banking and Loans , Economy
Referenced Symbols: BOLIGA ,

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