CAC 40 Drops On Oil Rally, Bond Yield Surge
(RTTNews) - French stocks slipped into negative territory on Thursday, extending recent losses, as rising oil prices and bond yields triggered inflation and interest rate concerns, prompting traders to trim down long positions.
The benchmark CAC 40, which dropped to 7,679.36, was down 68.77 points or 0.89% at 7,700.44, a little past an hour after noon.
German stocks tumbled on Thursday amid rising fears of inflation and interest rates as oil prices surged higher and bond yields rose amid an escalation in tensions in the Middle East.
Oil prices rose sharply amid rising concerns over an escalation in U.S.-Iran conflict. According to reports, the White House asked Pentagon to develop options to strike Iran before the midterm elections, but no final decision has been made. Meanwhile, oil companies operating in the Gulf of Mexico have begun curbing production and evacuating personnel from offshore facilities.
Brent crude front-month futures jumped to $105.20, gaining over 5%. The yield on France's 10-year Government Bonds rose to 4.975% today.
Stellantis dropped about 4.2%. STMicroelectronics, ArcelorMittal and Safran drifted down 3.7%-4%. Renault and Kering declined 2.5% and 2.2%, respectively.
Societe Generale, Michelin, BNP Paribas, Legrand, Unibail Rodamco, Air Liquide, EssilorLuxottica, Vinci, Credit Agricole, Saint-Gobain, Airbus, LVMH, Accor, AXA, Bouygues, Euronext and Eiffage fell 1%-2.2%.
Capgemini moved up 3.25%. TotalEnergies climbed 2.2%, riding on higher oil prices. Publicis Groupe, Danone and Dassault Systemes posted modest gains.
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