CAC 40 Little Changed As Traders Pare Rate Cut Bets

French stocks were little changed on Friday as hopes for an early rate cut by the U.S. Federal Reserve faded.

Data showed on Thursday that the U.S. producer price inflation rose 0.6 percent in February from last month, outpacing the modest 0.3 percent gain forecasted by economists.

The hotter-than-expected inflation print sent Treasury yields higher and cast doubt on a June rate cut.

According to the CME FedWatch Tool, the probability of the Fed leaving the policy rate unchanged at June meeting climbed from 25 percent to 40 percent after the CPI data released earlier this week and Thursday’s PPI data.

The benchmark CAC 40 was marginally higher at 8,168 after adding 0.3 percent the previous day.