CAC 40 Inches Higher On China Demand Hopes

French stocks advanced on Wednesday as Shanghai lifted the two-month long Covid-19 lockdown and China’s Caixin manufacturing PMI increased to 49.1 in May from April’s 26-month low of 46.0.

Closer home, activity in the French manufacturing sector slowed further last month, reaching a seven-month low, a survey showed.

Eurozone bond yields extended their climb as investors factored in a 50 basis-point rate hike from the ECB in July. The bank’s main deposit rate stands at minus 0.5 percent and has been negative since 2014.

The benchmark CAC 40 rose 10 points, or 0.2 percent, to 6,479 after closing 1.4 percent lower the previous day.

Building materials firm Saint-Gobain edged up slightly after it agreed to acquire Kaycan, Ltd., a family-owned manufacturer and distributor of exterior building materials in Canada and in the United States, for US$928 million or about 860 million euros in cash.

Dug major Sanofi gained around 1 percent. The company said that the U.S. FDA has granted Breakthrough Therapy designation to efanesoctocog alfa (BIVV001) for the treatment of people with hemophilia A.