CAC 40 Rises as Oil Rally Stalls

The CAC 40 rose 0.8% to close at 7,897 on Friday as the oil rally stalled, easing concerns over energy-driven inflation and pushing bond yields lower. Softer-than-expected US payrolls also supported rate-sensitive stocks amid reduced expectations of a Fed rate hike this month. The US economy added 29,000 jobs in September, well below forecasts for 90,000 and down sharply from 133,000 in August. Financials were mostly higher, with BNP Paribas up 0.6%. Industrial stocks also gained, with Airbus and Safran adding 2% and 0.9%, respectively. STMicroelectronics jumped 6.5% and Schneider Electric rose 3.5%, tracking gains among US chipmakers. In contrast, pharmaceutical stocks posted losses, with Sanofi down 3.1% and EssilorLuxottica shedding 1.2%. Meanwhile, Sumitomo Mitsui DS Asset Management sold its holdings of French government bonds, citing concerns over the country’s fiscal trajectory. The French government recently unveiled plans to sharply reduce the budget deficit.