CAC 40 Slips Amidst Fiscal Concerns

(RTTNews) - A renewed focus on the fiscal situation in France dampened sentiment for the CAC 40 benchmark that tracks the 40 largest French stocks based on the Euronext Paris. The acceleration in inflation in the Euro Area to levels higher than what the markets had anticipated also weighed on sentiment. The index has shed more than a quarter percent on Tuesday.

The CAC-40 is currently trading at 7,681.18, shedding 0.35 percent from the previous close of 7,707.90. The day's trading has been between 7,738.18 and 7,675.69.

Amidst the negative sentiment, only 9 scrips in the index are trading above the flatline.

Kering topped gains with an addition of 3.3 percent. LVMH followed with gains of 2.6 percent. Schneider Electric, Danone as well as Total Energies have gained more than 1 percent.

Eurofins Scientific topped losses with a decline of 3.7 percent. Unibail-Rodamco-Westfield followed with losses of 2.9 percent.

Bond yields in France hardened, ahead of the confidence vote on September 8. Yields on France's 10-year bonds hardened 1.6 percent to 3.594 percent, versus the level of 3.537 percent at the previous close. Yields ranged between 3.602 percent and 3.539 percent. Yields on 30-year bonds hit the highest level in over 16 years.

Amidst a global spike in bond yields, the dollar rallied, lifting the six-currency Dollar Index higher by 0.66 percent to 98.32. With the dollar strengthening, the EUR/USD pair has slipped 0.54 percent to 1.1646. The pair ranged between 1.1719 and 1.1624. Amidst the pound's weakness, the EUR/GBP pair has rallied 0.68 percent to 0.8705. The EUR/JPY pair has also increased 0.43 percent to trade at 173.12.