CAC 40 Gains Ground On Stimulus Hopes

(RTTNews) - French stocks rose on Wednesday amid signs of a thaw in U.S.-China relations and prospects of more stimulus.

Germany's coalition parties last night agreed to extend economic measures at a cost of up to 10 billion euros, including prolonging a short-time work program for an extra year to cushion the effects of the coronavirus crisis.

The French government will present its 100 billion euro stimulus plan on September 3, Prime Minister Jean Castex told France Inter radio today and added the new package marks "continuity" with emergency measures already in place.

Investors also looked ahead to Thursday's Jackson Hole meeting, during which Fed Chair Jerome Powell is expected to give details on the Federal Reserve's framework review.

The benchmark CAC 40 edged up 0.2 percent to 5,019 after ending on a flat note Tuesday.

In economic releases, French consumer sentiment index held steady at 94.0 in August, survey data from the statistical office Insee showed. The score came in line with expectations.

Households' opinion balance on their past financial situation gained 1 point to -14, while that related to their future financial situation was unchanged at -8.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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