CAC 40 Rallies As Evergrande Concerns Ease
French stocks opened higher on Friday as China Evergrande Group reportedly supplied funds to pay interest on a U.S. dollar bond, helping ease contagion fears.
Strong earnings from L'Oreal also boosted sentiment. The benchmark CAC 40 jumped 75 points, or 1.1 percent, to 6,762 after closing 0.3 percent lower the previous day.
Investors shrugged off the results of a survey showing that France's private sector grew at the slowest pace in six months in October.
IHS Markit said its composite output index fell to 54.7 in October, as economists' expected, from 55.3 in September.
"The overall rate of expansion slowed to a six-month low as the supply-side issues hurting manufacturers the most offset a faster expansion in services activity," Joe Hayes, a senior economist at IHS Markit said.
In corporate news, cosmetics major L'Oreal soared 6.3 percent after posting better-than-expected revenue growth for the third-quarter.
Remy Cointreau added 1.3 percent after the drinks maker forecast an "exceptional" current operating profit growth in the first half of its 2021/2022 fiscal year.
Renault declined 1.4 percent. The carmaker warned that its production losses this year would be far larger than previously forecast because of a global chip shortage.
Market Analysis
Reprinted from RTTNews,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.