CAC 40 Slides On US Rate Hike Bets

French stocks fell sharply on Tuesday, with sentiment hit by rising U.S. Treasury yields. Two-year yields, which track short-term rate expectations, crossed 1 percent for the first time since February 2020, reflecting expectations for a Fed policy rate hike as soon as March.

The benchmark CAC 40 dropped 83 points, or 1.2 percent, to 7,118 after climbing 0.8 percent in the previous session.

Automaker Renault fell 1.7 percent as industry data showed new car registrations in the EU dropped 22.8 percent year-on-year to 795,295 units, after a 20.5 percent slump in November.

Vivendi fell nearly 1 percent. The media conglomerate said that it has decided to invest in digital communication group Progressif Media.

Vivendi becomes an 8.5 percent shareholder in Progressif Media along with ZeWatchers, which will own 30 percent, and the three founders, Emile Duport, David Bonhomme and Thomas Ghys, who retain 60 percent of the company.

Food caterer Sodexo advanced 1.4 percent. Reuters reported Bain Capital was looking to bid for a stake in its benefits and rewards services unit.

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