Markets

CAC 40 Marginally Lower In Cautious Trade

(RTTNews) - French stocks were flat to slightly lower on Tuesday as investors weighed the possibility of additional fiscal stimulus from the United States against rising coronavirus cases around the world.

U.S. Senate Republicans on Monday proposed a $1 trillion coronavirus aid package that slashes unemployment benefits from the current $600 per week to $200, generating swift backlash from Democrats.

The proposal extends the paycheck protection program, which is scheduled to expire on August 8.

Senate Majority Leader Mitch McConnell urged Democrats to compromise with Republicans on the plan, as unemployment benefits will expire at the end of this week.

Investors also await the outcome of a two-day policy meeting of the Federal Reserve starting later in the day for directional cues.

The benchmark CAC 40 slid 6 points, or 0.12 percent, to 4,933 after losing 0.3 percent the previous day.

Rexel, a distributor of electrical supplies, tumbled 3.2 percent after it slipped to a net loss during the first half of the year.

Peugeot shares surged 4 percent after PSA Group said a strong rebound is underway.

Luxury goods conglomerate LVMH slumped 4.6 percent after its operating profit dived 68 percent in the first half of the year.

Gucci owner Kering dropped 1.2 percent and Hermes International declined 1.6 percent.

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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