CAC 40 rises 0.1% as rate-hike bets cool and construction PMI sinks
CAC 40 edged up 0.1% to around 8,293 Friday as investors pared expectations for a Federal Reserve rate hike later this month. France Construction PMI fell to 37.3 in August from 41.5 in July.
The CAC 40 edged up 0.1% to around 8,293 on Friday, building on modest gains from the previous session as investors pared expectations for a Federal Reserve rate hike later this month.
Federal Reserve Governor Christopher Waller indicated he could back a pause this month if inflation continues to ease, leading markets to scale back bets for a quarter-point rate hike to roughly even odds from about 70% earlier this week.
On the economic front, final estimates showed France’s Construction PMI fell to 37.3 in August from 41.5 in July, pointing to a steeper downturn in the sector and marking the sharpest contraction since May 2020.
On the corporate front, Legrand jumped 3.2% after Deutsche Bank raised its price target to €160 from €150, citing exceptionally strong organic growth momentum despite the company's significant exposure to the still-weak building sector.
Over the week, the CAC 40 remains on course for a fourth consecutive weekly decline.