CAC 40 Modestly Higher As Stocks Recover After Mild Setback

(RTTNews) - French stocks retreated after a firm start and briefly slipped into the red Tuesday morning, but rebounded swiftly to move fairly well above the flat line after buying resumed at some key counters amid hopes about economic recovery.

The benchmark CAC 40, which briefly slipped into the red after scaling a high of 4,920.80, is up 20.73 points or 0.43 percent at 4,896.66 about an hour before noon. The index gained 1.93 percent on Monday.

Renault is rallying about 5 percent and Peugeot is moving up nearly 4 percent. Societe Generale is up about 4 percent and Airbus Group shares are gaining 3.6 percent. Safran is up 3.3 percent, while Unibail Rodamco, Total, Thales and Accor are rising 2.5 to 2.8 percent.

BNP Paribas is advancing 1.8 percent, AXA is firming up 1.7 percent and ArcelorMittal is up 1.4 percent, while Credit Agricole and Publicis Groupe are higher by 1.3 percent and 0.9 percent, respectively.

Among the stocks losing ground, Worldline SA is declining 2.3 percent and Dassault Systemes is down 2 percent, while Schneider Electric, Teleperformance and Kering are lower by 1.2 to 1.3 percent. STMicroElectronics and Pernod Ricard are down with modest losses.

In Euro area economic news, preliminary data from Eurostat showed euro area industrial producer prices increased for the first time in five months in June and at a faster than expected pace, even though economic activity remained damped by the Covid-19 containment measures in most of the countries in the EU.

The producer price index for Eurozone rose 0.7 percent from May, when it fell 0.6 percent. Economists had forecast a 0.5 percent increase.

On a year-on-year basis, producer prices fell 3.7 percent after a 5 percent drop in May. Economists had expected a 3.9 percent decline.

In the EU, producer prices grew 0.7 percent month-on-month in June after a 0.5 percent fall in May. On a year-on-year basis, producer prices decreased 3.4 percent following a 4.6 percent drop in the previous month.

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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