France’s benchmark CAC 40 index opened strong at 6549.82 but soon shed gains to tread into negative territory to a low of 6502.8. The index is currently trading at 6513, close to the flatline with modest gains of 0.08 percent.
Renault that recently announced ambitious plans has surged by 2.57 percent followed by ArcelorMittal which has added 2.28 percent.
In declines, Essilor Luxottica lost 1.89 pecent followed by Teleperformance which corrected by 1.29 percent.
In the meanwhile, IHS Markit France Manufacturing PMI decreased to 59.0 in June from an over 20-year high of 59.4 hit in May but still above the forecast of 58.6. IHS Markit Eurozone Manufacturing PMI however rose to 63.4 as compared to 63.1 in the previous month and surpassing the expectation of 63.1. The Euro Area unemployment numbers for May declined to 7.9 percent from the previous reading of 8.1 percent and in line with the forecast of 7.9 percent. However markets were not impressed and soon corrected from the overnight closing levels.
The euro hovered around $1.18, the lowest level since early April as dovish comments from ECB officials starkly contrasted with hawkish comments from their American counterparts to strengthen the greenback.
Key Indicators for June expected from the U.S. later in the day are Initial / Average Jobless claims and Manufacturing PMI, whereas the crucial Non-Farm Payrolls data is due for release late on Friday.
Market Analysis
CAC-40 Falls After Strong Opening
2021-07-01 11:52:20
