CAC 40 Slides As BOJ Policy Tweak Sends Yields Soaring
(RTTNews) - French stocks were moving lower on Friday after a slew of strong economic data from the United States revived worries about interest rates.
Investors were also reacting to the Bank of Japan's decision to loosen its grip on bond yields.
Closer home, the French economy grew more than expected in the second quarter, underpinned by a rebound in exports while consumption decreased, and investment growth was modest, preliminary data from the statistical office INSEE showed.
Gross domestic product rose 0.5 percent from the first quarter, when the second biggest economy in the euro area expanded 0.1 percent, which was revised down from 0.2 percent.
Economists were looking for 0.1 percent growth in the second quarter. The benchmark CAC 40 was down 34 points, or half a percent, at 7,431 after climbing 2.1 percent the previous day.
Capgemini shares plummeted 7 percent. After posting higher half-year sales, the IT consulting group said it would invest 2 billion euros ($2.19 billion) in AI over three years.
Drug maker Sanofi tumbled 3 percent despite lifting its earnings outlook.
Birkin bag maker Hermes rose about 2 percent after first-half earnings and second-quarter sales growth beat analysts' estimates.
Stock and derivatives exchange Euronext jumped 7 percent after it launched a 200-million-euro ($219.88 million) share buyback program.
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