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FX.co ★ CAC 40 Slips Amidst Economic Woes

CAC 40 Slips Amidst Economic Woes

Renewed apprehensions surrounding economic activity and growth in both France and the broader Euro Area have caused the CAC 40 index to dip below Thursday's closing figures. The latest HCOB PMI data have surprised analysts with unexpected declines, indicating a deeper slide into contraction territory.

The Manufacturing PMI, previously steady at 44.5, unexpectedly fell to 43.2. Similarly, the Services PMI, anticipated to hold at 51.6, dropped to 49.4. The composite PMI also came in lower than expected at 47.3, compared to the market forecast of 48.6. This weak data from Germany and France has adversely impacted PMI figures across the Euro Area.

Currently, the CAC 40 stands at 7,196.68, marking a 0.23 percent decrease from its previous close of 7,213.32. The day's trading range has fluctuated between 7,263.08 and 7,156.23.

Amid economic concerns, only 20 of the 40 largest French stocks, as tracked by the Euronext Paris, are trading above the flatline. Eurofins Scientific leads the gains with a 1.6 percent increase. Other notable gainers include Unibail-Rodamco-Westfield, Teleperformance, Publicis Groupe, and Sanofi, each registering gains of over one percent. Meanwhile, Thales has plummeted 6.6 percent following news of an investigation by the UK's Financial Conduct Authority. Financial institutions BNP Paribas, Credit Agricole, and Societe Generale have all seen declines exceeding 2 percent.

In the currency markets, the US dollar index has surged nearly half a percent, pushing the EUR/USD pair down by 0.51 percent to 1.0419, within a range between 1.0499 and 1.0333. Conversely, the EUR/GBP pair has inched up by 0.08 percent to 0.8327. However, a stronger yen has pressured the EUR/JPY pair down by 0.65 percent to 160.83.

Aligned with the global trend towards easing, France's ten-year bond yields have decreased by over 2 percent, dropping to 3.033 percent from the prior close of 3.096 percent. This marks the lowest yield in about a month, with a trading range between 3.129 percent and 3.027 percent.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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