French stocks fell sharply on Wednesday amid concerns over a potential pick-up in inflation in the coming months.
Euro zone government bonds yields rose, with the benchmark German Bund yield hitting a two-year high on concerns that the European Central Bank could decide to scale back its emergency bond-buying program as early as next month.
European Central Bank chief Christine Lagarde said on Tuesday it was “essential that monetary and fiscal support are not withdrawn too soon.”
Concerns over Italy’s economic reform path and escalating tensions between Washington and Beijing also weighed on sentiment as investors await the Fed meeting minutes for further cues.
The benchmark CAC 40 dropped 73 points, or 1.2 percent, to 6,279 after declining 0.2 percent in the previous session.
Automaker Renault fell 2.6 percent despite positive data.
European new car registrations rose 24.4 percent year-on-year in the January to April period to 3.4 million units due to the low base of comparison amid coronavirus restrictions, data from the European Automobile Manufacturers Association/ACEA showed earlier today.
CAC 40 Slides On Inflation Concerns
2021-05-19 08:59:33
