CAC-40 is trading more than half a percent higher as investors digest a slew of data releases on inflation, growth and the strength of the economy as well as the broader Euro Area. While homeland GDP stagnated, Euro Area expanded marginally. Inflation in France as well as Euro area accelerated as the war impacted commodity and energy prices.
Data released before hours showed the French economy stagnating in the first quarter versus expectations of a 0.3 percent growth. Annual GDP growth is 5.3 percent versus an upwardly revised 5.5 percent in the fourth quarter.
Euro Area GDP however expanded by 0.2 percent in the first quarter versus expectations of 0.3 percent. Yearly GDP growth rose to 5 percent from 4.7 percent in the previous quarter.
As expected, the annual inflation in the Euro Area touched a record high of 7.5 percent versus previous month’s level of 7.4 percent and well above the ECB’s target of 2 percent.
The annual inflation in France increased to 4.8 percent, the highest since 1985. Markets were expecting a reading of 4.5 percent. French producer prices also increased 4.3 percent on a monthly basis.
The CAC-40 is currently trading at 6,547.43, up 0.60 percent from Thursday’s close. The day’s trading has been between 6,601.15 and 6,546.84.
Airbus is leader the rally in the index with a gain of 3 percent. Auto maker Renault has added 2.83 percent. Luxury brand Kering is trading 2.5 percent higher.
STMicroelectronics, Stellantis and Saint Gobain are also trading more than 2 percent higher.
Eurofins Scientific is trading with more than half a percent of losses.
The EURUSD pair is at 1.0568 after gaining 0.71 percent overnight amidst the US Dollar Index falling 0.54 percent to 103.06.
The ten-year bond yield has increased by 3.18 percent to 1.446 percent versus 1.401 percent on Thursday.
Market Analysis
CAC-40 Strong Despite Weak Macroeconomic Data
2022-04-29 10:40:31
