CAC 40 Down Marginally In Lackluster Trade

(RTTNews) - French stocks are down on Tuesday, extending recent losses, as a downgrade revision in global growth forecast by the Organization for Economic Co-operation and Development (OECD), and continued uncertainty about Trump administration's tariff moves weigh on sentiment.

The benchmark CAC was down 14.94 points or 0.19% at 7,722.26 a few minutes ago.

Teleperformance, Michelin and LVMH are down 3%, 2.4% and 2.2%, respectively. ArcelorMittal is down nearly 2%.

Veolia Environment, Societe Generale, Kering and Edenred are declining 1 to 1.4%. Capgemini, Schneider Electric, Hermes International, Eurofins Scientific, Credit Agricole and Bureau Veritas are also down in negative territory.

Sanofi, Safran, Dassault Systemes, Accor, L'Oreal, AXA, Renault, Thales, Orange, Carrefour and STMicroElectronics are up with moderate gains.

On the economic front, data showed France's government budget deficit narrowed to EUR 69.3 billion in April 2025 from EUR 91.6 billion in the corresponding period of the previous year. Total revenues climbed by 42% year-on-year to EUR 105.6 billion, while expenditures rose at a softer 3.2% to EUR 158.5 billion.

The OECD slashed its global growth forecast to 2.9% from its earlier forecast of 3.1% for 2025.

The Paris-based firm said the outlook across the globe has become challenging with rising trade barriers and policy uncertainty, which is weighing on consumer confidence and blocking investments.

Flash data from Eurostat showed eurozone inflation eased more than expected in May largely due to the slowdown in services inflation.

Inflation softened to 1.9% in May, slightly below the central bank's target of 2%. Inflation was expected to slow to 2% from 2.2% in April.

Core inflation that strips out prices of energy, food, alcohol and tobacco, slowed unexpectedly to 2.3% from 2.7%. The rate was seen at 2.4%.

On a monthly basis, the harmonized index of consumer prices remained flat in May.

A separate data from Eurostat said the unemployment rate in the Euro Area edged down to 6.2% in April 2025, matching the record low set in December. The rate was down from a revised 6.3% in March.