French stocks rose on Friday after reports said U.S. President Joe Biden will seek $6trillion in federal spending plans for 2022. Biden is expected to unveil his first full budget later in the day.
Investors also wait for an update on the personal-consumption expenditures price index, the Federal Reserve’s preferred gauge of inflation, amid concerns that a higher-than-expected figure could force the U.S. Federal Reserve to tighten its monetary policy.
Rate hike worries persist despite reassurances from several Fed officials that the U.S. central bank is in no hurry to do that.
The benchmark CAC 40 edged up 26 points, or 0.4 percent, to 6,462 after gaining 0.7 percent the previous day.
Banks were broadly higher, with Credit Agricole rallying 1.7 percent and Societe Generale rising half a percent. Automaker Renault advanced 0.8 percent.
In economic releases, France’s consumer price inflation accelerated to 1.4 percent in May from 1.2 percent in April, flash data from statistical office Insee revealed.
The rate came in line with economists’ expectations and a similar higher rate was last reported in February 2020.
The French economy contracted 0.1 percent in the first quarter of 2021, revised official data showed, marking a slip into recession as construction had fared worse than previously estimated.
Market Analysis
CAC 40 Rises With Biden’s First Budget In Focus
2021-05-28 09:12:29
