logo
Plus   Neg
Share
Email

CAC 40 Off Day's Highs After GDP Data

French stocks were moving higher on Friday after U.S. technology giants Amazon, Apple, Alphabet and Facebook posted stellar earnings, defying one of the worst economic downturns on record.

Investors shrugged off Eurostat data showing that the economy of the 19-country currency bloc shrank by a devastating 12.1 percent during the second quarter from the quarter before as the impact of Covid-19 induced lockdowns began to be felt across Europe.

Meanwhile, inflation unexpectedly ticked up in July, defying expectations of a slowdown.

Closer home, the French economy logged a double-digit contraction in the second quarter due to the shut-down of "non-essential" activities as part of the lockdown, first estimate from the statistical office Insee showed.

Gross domestic product fell by a record 13.8 percent sequentially, following the first quarter's 5.9 percent decrease. Economic output was 19 percent lower than in the second quarter of 2019.

France's consumer prices grew 0.8 percent on a yearly basis in July, faster than the 0.2 percent rise seen in June and economists' forecast of 0.3 percent. This was the fastest rate in five months.

The benchmark CAC 40 rose 36 points, or 0.73 percent, to 4,888 after declining 2.1 percent on Thursday.

Electric utility Engie surged 4.6 percent. The company announced a new review of its assets after reporting a drop in first-half sales and profits.

Lender BNP Paribas jumped 4 percent after it beat second quarter profit expectations. Credit Agricole rose 1.1 percent and Societe Generale added 0.9 percent.

Concessions and construction company Vinci edged up 0.6 percent despite dropping dividend and warning its 2020 earnings would fall significantly.

Air France-KLM declined 2 percent after the airline announced it would cut 1,500 additional jobs.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT