CAC 40 Slides On Inflation Worries

French stocks were moving lower on Friday as persistent worries about inflation offset encouraging GDP data for the third quarter.

French gross domestic product grew 3 percent sequentially in the third quarter on robust household spending and exports, the first estimate from the statistical office Insee showed.

That was much faster than the 1.3 percent expansion logged in the second quarter and the economists’ forecast of +2.1 percent.

GDP almost returned to its pre-crisis level and was just 0.1 percent below its fourth quarter 2019 level.

At the same time, another report revealed that the country’s consumer price inflation accelerated more than expected in October due to higher service and energy prices.

The consumer price index rose 2.6 percent year-on-year following a 2.2 percent increase in September. Economists had forecast inflation of 2.5 percent.

The benchmark CAC 40 was down 26 points, or 0.4 percent, at 6,778 after climbing 0.8 percent in the previous session.

Building materials firm Saint-Gobain lost 3.7 percent despite reporting a rise in nine-month sales.

Air France-KLM shares jumped 5 percent after the airline group significantly reduced its net loss in the third quarter.

Luxury eyewear group EssilorLuxottica advanced 1.6 percent after raising its full-year guidance.

BNP Paribas added 1.7 percent. The lender launched a share buyback program for a maximum total of 900 million euros ($1 billion) after posting a strong rise in third-quarter profit.