FX.co ★ CAC 40 Slips on Trade Tensions and Weak PMI Data

The CAC 40 slightly dipped by 0.1% on Friday, poised to conclude a turbulent week with a decline of approximately 1.5% at 8,140 points. This movement comes as investors evaluate the potential repercussions from ongoing trade tensions concerning Greenland. The week began with U.S. President Donald Trump threatening tariffs on eight European countries, including France, unless the United States is permitted to acquire Greenland. Although Trump later retracted this threat, citing a possible agreement with NATO involving Greenland, investors remained cautious due to fears that tariffs could still emerge as a negotiation tactic. In other developments, markets analyzed the latest flash PMI data and business survey outcomes from France. Unexpectedly, private sector activity contracted in January, driven by a downturn in services overshadowing gains in manufacturing. On a brighter note, France's manufacturing business climate indicator climbed to its highest level since July 2022.