Markets

CAC 40 Slips Into Red Ahead Of ECB Meeting

(RTTNews) - French stocks fell in cautious trade on Wednesday as weak data stirred concerns of a global growth slowdown.

France's private sector grew at a slower pace in July, survey results from IHS Markit showed today. The flash composite output index fell to 51.7 in July from 52.7 in June.

The euro area private sector expanded at the slowest pace in three months in July as a deepening manufacturing downturn was accompanied by a slight moderation in service sector growth.

The composite output index fell to 51.5 in July from 52.2 in June. The services PMI slid to 53.3 from 53.6 in the previous month while the manufacturing PMI declined to 46.4 from 47.6 a month ago, hitting a 79-month low.

The International Monetary Fund (IMF) on Tuesday downgraded its global growth outlook and warned that U.S. tariffs on European cars, a no-deal Brexit or a trade war with China could tank the global economy.

As concerns mount over the health of the euro zone's economy, the European Central Bank is seen cutting rates by 10 basis points when it meets on Thursday.

The benchmark CAC 40 was down 26 points or 0.46 percent at 5,592 after gaining 0.9 percent on Tuesday.

Groupe SEB shares plunged 5 percent. The French consortium that produces small appliances said it targets an organic sales growth above 7 percent and, based on current exchange rates, an increase of around 6 percent in reported operating result from activity for 2019.

Peugeot shares advanced 1.9 percent. Groupe PSA the owner of Peugeot and Opel brands, reported that its first-half net income, Group share increased to 1.83 billion euros from 1.48 billion euros a year ago.

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