FX.co ★ CAC 40 Declines As Investors Await Key Inflation, GDP Readings

French stock markets experienced a downturn on Tuesday, as investors exercised caution ahead of the forthcoming release of data detailing euro zone inflation and GDP.

Earlier in the day, data indicated that French economic growth had doubled in the first quarter due to increased final domestic demand. Reports from the statistical office INSEE suggested that the Gross Domestic Product (GDP) had seen a quarterly growth of 0.2 percent after a 0.1 percent rise in the previous quarter. This increase exceeded the predicted growth of 0.1 percent.

Moreover, recent flash data indicated that the consumer price inflation in France decelerated further in April, reaching its lowest level in over two and a half years. This came primarily as a result of a slower growth in food prices. In April, the consumer price index recorded an annual increase of 2.2 percent, showing a slight deceleration from the 2.3 percent rise noted in March.

The CAC 40, France's benchmark index, fell by 24 points or 0.3 percent, dropping to 8,041, following a similar descent the previous day.

In company news, Air France-KLM shares dropped by 2.7 percent after a deepened operating loss was reported for the first quarter of 2024. Similarly, despite a strong first quarter performance in terms of sales, shares in Thales were marginally lower. Rexel, the electrical supplies distributor, experienced a drop in share value by more than 3 percent after falling short of predicted sales in Q1.