CAC 40 Slides As Focus Shifts To US CPI Data, ECB Meeting

French stocks were moving lower on Tuesday as caution crept in ahead of the release of key U.S. consumer and producer inflation readings this week that will help shape the outlook for Federal Reserve monetary policy.

Also, the focus shifted to the European Central Bank (ECB) monetary policy decision on Thursday, with the central bank expected to cut interest rates by 25 bps for the third time in a row.

The benchmark CAC 40 was down 36 points, or half a percent, at 7,443 after climbing 0.7 percent in the previous session.

China-related luxury goods makers such as LVMH, Kering and Hermes International were down 1-2 percent after China’s exports and imports both missed expectations in November, signaling growing trade challenges.