CAC 40 Declines Amidst Peace Deal Hopes

(RTTNews) - The CAC 40 benchmark that tracks the 40 largest French stocks based on the Euronext Paris declined on Thursday despite growing optimism over a diplomatic breakthrough between the U.S. and Iran.

CAC 40 is currently trading at 8,283.95, slipping 0.19 percent from the previous close of 8,299.42. The day's trading ranged between 8,274.11 and 8,361.

At current levels, the index has gained more than 8.6 percent over the past 1 year. Amidst the weak sentiment, only 19 scrips in the 40-stock index are trading above the flatline.

Kering topped gains with a surge of 2.9 percent. Hermes International as well as Accor followed with gains of close to 2 percent. Legrand as well as Renault have added around 1.7 percent.

Bouygues led losses with a decline of almost 3 percent. Capgemini followed with losses of 2.8 percent. Danone, Pernod Ricard, Sanofi, Euronext, as well as Air Liquide have all declined more than 1.5 percent.

Encouraged by the decline in crude oil prices, markets have scaled down bets of rate hikes by the European Central Bank, dragging down bond yields. France's 10-year bond yields have declined 0.30 percent on Thursday to 3.605 percent, versus the level of 3.616 percent at close on Wednesday. Yields ranged between 3.629 percent and 3.579 percent in the day's trading.

The dollar's decline, attributed to fading safe haven demand and easing rate expectations from the Federal Reserve have dragged down the 6-currency Dollar Index 0.11 percent to 97.91. The index was at 98.02 a day earlier. The EUR/USD pair has in the meanwhile rallied 0.15 percent to 1.1766. The pair ranged between 1.1778 and 1.1745. The EUR/GBP pair is trading almost flat at 0.8642. The EUR/JPY pair has also rallied 0.15 percent to trade at 184.00.