FX.co ★ CAC 40 Gains On Expectations Of US Rate Cuts

French stocks saw an uptick on Friday, buoyed by robust U.S. GDP growth and indicators of moderating inflation, setting the stage for a potential Federal Reserve interest rate cut in the near future.

Earlier this week, a former Federal Reserve hawk cautioned that delaying a rate cut until September "unnecessarily increases the risk" of a recession.

The benchmark CAC 40 index climbed 67 points, or 0.9%, to close at 7,494, rebounding after a 1.2% decline on Thursday.

In corporate developments, Capgemini shares plummeted 11%. The IT consulting firm revised its annual revenue forecast to a decrease of between 0.5% and 1.5%, in contrast to the earlier projection of a 0-3% increase.

Conversely, Hermes International surged nearly 5%, as the celebrated Birkin-bag manufacturer reported a 13% increase in second-quarter sales, bucking the trend of a luxury market downturn.

EssilorLuxottica, the eyewear giant, saw its shares leap by 8% following a strong financial performance in the first half of 2024.

Meanwhile, Bouygues, the construction and telecom conglomerate, slipped 1% despite posting better-than-expected core profits for the first half of the year.