FX.co ★ CAC 40 Drifts Lower On Interest Rate Uncertainty

French equities experienced a decline on Thursday, following the U.S. Federal Reserve's decision to maintain interest rates while highlighting persistent inflation concerns that preclude rate cuts for the time being.

On the European front, European Central Bank Governing Council member Joachim Nagel addressed ongoing issues with stubborn consumer price growth in the euro zone, stressing that lowering borrowing costs will not occur automatically. Additional insights are expected from Governing Council member Madis Muller, who is scheduled to speak later in the session.

The CAC 40 benchmark index dropped by 57 points, or 0.7 percent, to 7,807, reversing some of the gains made from a 1 percent increase the previous day.

In corporate developments, Technip Energies N.V., an engineering and technology firm, saw its shares dip by approximately 1 percent despite securing a significant new contract. The company announced that its joint venture with Japan's JGC and UAE’s NMDC Energy has been awarded a major EPC contract by the Abu Dhabi National Oil Company.

Meanwhile, rolling stock manufacturer Alstom SA declined by 2.4 percent. The company finalized a share capital increase, raising 1 billion euros, including issue premium, with preferential subscription rights for shareholders. This marks the completion of a previously announced 2 billion euros deleveraging plan.