CAC 40 Slips On Weak GDP Data
(RTTNews) - French stocks were moving lower on Friday as investors reacted to a slew of economic data and earnings.
The French economy posted a slower growth in the third quarter, thanks to a stagnation in household spending due to high inflation, and the weak foreign demand, preliminary data from the statistical office INSEE revealed.
Gross domestic product grew 0.2 percent from the second quarter, when the economy expanded 0.5 percent. The pace of growth came in line with economists' expectations.
Separately, flash data from the statistical office revealed that French consumer price inflation accelerated at a faster-than-expected pace to a new record high in October amid higher costs of energy, food, and manufactured goods.
Consumer price inflation rose to 6.2 percent in October from 5.6 percent in September while economists had forecast inflation to increase slightly to 5.7 percent. This was the strongest inflation since 1985.
Separate official data showed that producer price inflation eased in September, though it remained high overall.
The benchmark CAC 40 was down 31 points, or half a percent, at 6,213 after declining half a percent on Thursday.
Food group Danone rallied 2.2 percent after raising its 2022 revenue growth forecast. Sanofi gained 1.9 percent. The drug maker forecast faster earnings growth this year after reporting strong sales in the third quarter.
Air France KLM plummeted 9 percent after the airline lowered its full-year capacity guidance.
Safran gained about 1 percent. The jet engine maker and aerospace supplier raised its 2022 revenue and cashflow targets.
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