CAC 40 Rally Alleviates Evergrande Concerns

French stocks reportedly opened up on Friday as China’s Evergrande Group funded interest payments on US dollar bonds to mitigate fears of transmission.

Strong earnings from L’Oréal also boosted emotions. Benchmark CAC 40 rose 75 points (1.1%) to 6,762 after closing at 0.3% down the day before.

Investors shrugged off the results of a study showing that the French private sector grew at the slowest pace in the six months of October.

IHS Markit said the combined production index in October fell from 55.3 in September to 54.7, as economists expected.

“Overall growth slowed to its lowest level in six months, as supply-side problems that hurt manufacturers most offset the rapid expansion of service activity,” said Joe Hayes, senior economist at IHS Markit. rice field.

In corporate news, cosmetics giant L’Oréal surged 6.3% after recording higher-than-expected earnings growth in the third quarter.

Rémy Cointreau added 1.3% after beverage makers forecast “exceptional” current operating profit growth in the first half of fiscal year 2021/2022.

Renault fell 1.4%. Automakers have warned that this year’s production losses will be much higher than previously predicted due to a global chip shortage.

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CAC 40 Rally Alleviates Evergrande Concerns

Source link CAC 40 Rally Alleviates Evergrande Concerns

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