CAC 40 Slides On Recession Worries

(RTTNews) - French stocks fell sharply on Tuesday after a survey showed the country's business activity slowed by more than initially forecast in June, partly because of inflationary pressures.

The benchmark CAC 40 fell 57 points, or nearly 1 percent, to 5,897 despite signs of an easing in U.S.-Sino tensions and upbeat service sector data from Asia.

Media reports suggested that U.S. President Joe Biden was contemplating rolling back some tariffs on Chinese imports, and that Chinese Vice Premier Liu He had a "constructive" virtual dialogue with U.S. Treasury Secretary Janet Yellen.

China's services activity jumped to the highest level in nearly a year in June while Japan's services activity expanded at the fastest pace since October 2013, data showed earlier in the day.

Wine and spirits company Remy Cointreau jumped more than 4 percent after Jefferies upgraded the stock to "buy" from "hold".