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CAC 40 Drifts Lower On Iran Sanctions

French stocks were moving lower on Tuesday after a U.S. official said on Monday that President Trump was "comfortable with any outcome" from talks with Chinese President Xi Jinping at the G20 meetings in Japan this weekend.

Geopolitical tensions also remained in focus after the United States imposed new sanctions on Iran aimed at preventing some top Iranian officials from using the international banking system or any financial vehicles set up by European nations or other countries.

Sharply criticizing the new sanctions, Iran said the measures spell the "permanent closure" for diplomacy between the two nations.

The benchmark CAC 40 was down 11 points or 0.19 percent at 5,510 in opening deals after closing 0.1 percent lower on Monday.

Capgemini soared as much as 7 percent. The business consultancy firm has agreed to buy engineering and digital services company Altran Technologies for total cash consideration of 3.6 billion euros, excluding net financial debt of 1.4 billion euros. Altran shares jumped 21 percent.

Automaker Renault fell over 1 percent. Nissan Chief Executive Hiroto Saikawa said that the carmaker will postpone talks with French partner Renault on deepening their alliance, instead focusing on its own recovery.

In economic releases, France's manufacturing confidence deteriorated in June largely reflecting weak production outlook and foreign demand, survey results from the statistical office Insee showed.

The manufacturing sentiment index dropped to 102 in June from 104 in May. The score was forecast to remain unchanged at 104.

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