Higher Crude Oil Prices, Weak Economic Data Weigh On French Stocks

(RTTNews) - The French stock market's benchmark index CAC 40 slipped into negative territory on Wednesday, failing to hold early gains, as oil prices climbed higher on supply concerns amid lingering uncertainty about Iran and U.S. reaching a deal to end their conflict anytime soon.

Data showing an acceleration in French inflation in the month of September weighed as well on sentiment.

Brent crude futures for December delivery climbed to $97.70 a barrel, and were up 1.2% at $97.30 a barrel a little while ago. Lingering concerns about energy supply due to a lack of progress in U.S.-Iran negotiations to reopen the Strait of Hormuz continued to render the oil market quite volatile.

The CAC 40, which climbed to 8,068.51 earlier, was down 41.47 points of 0.52% at 7,994.40 a quarter past noon.

Publicis Groupe drifted down 2.3%. AXA, Eiffage, Dassault Systemes, Vinci, TotalEnergies, Bouygues, BNP Paribas and Carrefour lost 1%-1.7%.

Schneider Electric, Legrand, Eurofins Scientific, STMicroelectronics, Societe Generale, Engie, Unibail Rodamco and Bureau Veritas shed 0.5%-0.9%.

Pernod Ricard climbed 1.8% and Stellantis moved up 1.6%. Airbus, Renault, Safran, L'Oreal, Sanofi, Danone, Veolia Environment and Accor gained 0.4%-1%.

Preliminary estimate from the statistical office INSEE said French inflation accelerated more than expected in September on energy and fresh food prices. Consumer price inflation rose to 3% from 2.4% in August. A similar higher rate was last seen in February 2024. The rate was also above economists' forecast of 2.8%.

EU harmonized inflation climbed markedly to 3.4% from 2.6% in the prior month. The rate was seen at 3%.

On a monthly basis, consumer prices in France declined 0.3%, reversing a 0.7% rise in August. Prices were forecast to fall 0.5%.

Likewise, the harmonized index of consumer prices slid 0.4%, in contrast to the 0.7% rise in the prior month. The HICP was also expected to drop 0.5%.

Another data from INSEE showed that producer price inflation in the domestic market advanced to 4.8% from 3.5% in July. On a monthly basis, producer prices grew 1%, following July's 1.3% increase.