logo
  

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.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT