CAC 40 Slides To Lowest Level Since March As Oil, Bond Yields Rise
(RTTNews) - France's equity benchmark CAC 40 tumbled to its lowest level since March on Thursday as stocks shed ground amid rising concerns about inflation and interest rates as oil prices climbed higher and bond yields remained elevated due to geopolitical tensions.
With no progress seen in resolving the Middle East issue, oil prices rose sharply with front-month Brent crude futures surging to $100.79 a barrel, up by about 2.8% over previous close.
The yield on France's 10-year Government bond climbed to 4.953% before easing to 4.873%, still 0.03% up from Wednesday's level.
The CAC 40, which dropped to 7,820.98, was down 111.60 points or 1.4% at 7,852.91 a few minutes past noon.
Societe Generale, Accor, Credit Agricole, Saint Gobain and BNP Paribas shed 3%-3.2%. Capgemini, Kering, Unibail Rodamco, Carrefour, ArcelorMittal and Hermes International lost 2%-2.5%.
Veolia Environment, Bouygues, Vinci, TotalEnergies, LVMH, AXA, Engie, L'Oreal, Bureau Veritas, Dassault Systemes, Stellantis, Air Liquide, EssilorLuxottica, Eiffage, Renault, Airbus and Pernod Ricard also drifted notably lower.
Sanofi and STMicroelectronics advanced by 0.8% and 0.7%, respectively. Legrand, Orange and Thales edged up marginally.
Data released by S&P Global showed the S&P Global France Manufacturing PMI eased to 50.6 in September from 51.1 in August, surpassing the preliminary estimate of 50.3. Factory production increased for a second straight month, but only marginally as falling demand weighed on output.
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