FX.co ★ CAC 40 Rallies On China Stimulus Hopes

French stocks experienced a significant uptick on Wednesday, driven by optimism surrounding potential Chinese economic stimulus and favorable corporate earnings, all ahead of the Federal Reserve's anticipated interest rate decision later in the day.

A gauge of China's manufacturing activity declined to a five-month low in July, heightening expectations for increased Chinese economic intervention.

The benchmark CAC 40 index climbed 93 points, or 1.25%, to 7,568, building on a 0.4% rise from the previous session.

Airbus, the global aerospace leader, saw its shares surge by 4.4%, while Safran, a prominent manufacturer of jet engines and aerospace equipment, fell nearly 1% following the release of their half-year financial results.

Danone, known for its yogurt products, jumped 4.5% after posting higher-than-anticipated revenue growth in the second quarter.

Schneider Electric, an international giant in energy management and automation, rallied 3.4% following strong first-half earnings and an upward revision of its financial outlook.

Veolia Environnement SA, a key player in environmental management services, rose by approximately 1% after its subsidiary, Veolia North America, agreed to sell Veolia North America Regeneration Services to the private equity firm American Industrial Partners for an enterprise value of $620 million.