CAC 40 Pares Early Gains; Luxury Stocks Lose Ground

(RTTNews) - France's benchmark index CAC 40 rose to a five-month high on Friday morning as stocks extended gains from the previous session amid easing concerns about inflation and fading worries about interest rate hikes. However, due to a lack of support at higher levels, the market pared most of its early gains and was roughly flat a little while ago.

On Wednesday, data from the U.S. Labor Department showing a smaller than expected growth in non-farm payroll employment in the month of June helped ease concerns about any immediate interest rate hike by the Federal Reserve.

The CAC 40 was up just 3.76 points or 0.04% at 8,478.62, having coming off a high of 8,515.25.

ArcelorMittal gained 3.7%, while Veolia Environment, Engie and Legrand moved up 1.85%, 1.8% and 1.7%, respectively.

Schneider Electric, Eiffage, Michelin,, Airbus, Euronext, Vinci and Bouygues gained 1%-1.3%.

STMicroelectronics, Safran, Renault and Bureau Veritas moved up 0.7%-0.9%. BNP Paribas, Publicis Groupe and Unibail Rodamco posted modest gains.

Shares of voucher and benefits company Pluxee surged about 7% after Q3 revenue beat analysts' expectations.

L'Oreal shed 3.1%. Kering and Stellantis drifted down 2.4% and 2.3%, respectively. Hermes International, EssilorLuxottica, Carrefour and LVMH lost 1.2%-2%.

Pernod Ricard, Danone, Accor, Orange and Dassault Systemes also showed weakness.

Final purchasing managers' survey results published by S&P Global showed the euro area private sector stabilized in June after two months of moderate decline.

The Eurozone composite output index registered 50.0 in June compared to 48.5 in May. The flash score was 49.5.

The final services PMI rose to 49.4 from 47.7 in the previous month. The score was initially estimated at 48.9.

Although French private sector activity improved from May, the sector remained in the contraction territory for the sixth straight month. The composite output index posted 47.2, down from May's 28-month low of 44.9 and the initial estimate of 47.6.

The services PMI climbed to 46.8 in June from 44.3 in the previous month. The flash score was 47.4.

France's industrial production dropped marginally in May after rising for two straight months, the statistical office INSEE said.

Industrial production fell 0.1% on a monthly basis in May, in contrast to the 0.3% rise in April and 1.4% increase in March. Economists had forecast a monthly decrease of 0.3%.