CAC-40 Climbs On Growth And Earnings Boost

(RTTNews) - CAC-40 is trading more than a percent higher on Friday as upbeat earnings updates and a more than expected GDP growth helped reinforce market sentiment.

Data released earlier in the day showed France's second quarter GDP growing at 0.5 percent, versus expectations of 0.2 percent growth and the 0.2 percent contraction in the previous period.

Likewise, the Eurozone economy grew 0.70 percent in the June quarter, versus market expectations of a 0.20 percent growth. The first quarter's growth stood downwardly revised to 0.5 percent.

Meanwhile, annual inflation rate in France increased to 6.1 percent in July from 5.8 percent in June. The reading is the highest since July of 1985, and is higher than the market forecast of 6 percent. Data also showed the annual inflation rate in the Euro Area increasing to a new record high of 8.9 percent in July, versus 8.6 percent in June, which the markets were expecting.

The CAC-40 is currently trading at 6,426.64, up 1.4 percent from Thursday's close. The day's trading has been between 6,454.47 and 6,397.91.

Luxury group Hermes International which posted record profitability is the top gainer with a 6.7 percent surge.

Information technology services business Capgemini follows with a 5.7 percent uptick. Real Estate Investment Trust Unibail-Rodamco-Westfield has gained 4.4 percent. Renault has also added 4 percent.

Ophthalmic business EssilorLuxottica and media business Vivendi have both declined more than 3 percent. Thales and Legrand have both declined more than 2 percent.

The EUR/USD pair is at 1.0204 after gaining 0.08 percent overnight amidst the US Dollar Index weakening 0.25 percent to 106.08.

The ten-year bond yield has increased by 6.77 percent to 1.467 percent versus 1.374 percent on Thursday.