CAC 40 Down 72 Points On Hawkish Fed Hike
(RTTNews.com) - French stocks succumbed to heavy selling pressure on Thursday after the Fed's less dovish than expected policy statement.
The U.S.Federal Reserve on Wednesday raised interest rates by a quarter point, as widely expected, and indicated it still expects to hike rates twice in the first half of next year, despite mounting economic headwinds.
Investors fear that the Fed's commitment to tighten monetary policy could choke economic growth.
The benchmark CAC 40 was down 72 points or 1.51 percent at 4,705 after falling around 2 percent earlier in the day to hit its lowest level since late 2016. Selling was seen across the board.
Bourbon slumped 5.3 percent on news it is searching for new financial partners to ensure its development and the implementation of a strategic plan.
Publicis Groupe dropped 1.4 percent. The company said it is entering into exclusive negotiations with the founding shareholders of Soft Computing, data marketing firm in France, to acquire a controlling block representing 82.99 percent of the share capital at a price of 25 euro per share.
Capgemini lost 2.3 percent after announcing share capital reduction.
Renault declined 1.7 percent even as a Tokyo court rejected a request from prosecutors to extend the detention of Nissan Motor Co's ousted chairman, Carlos Ghosn.
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