FX.co ★ CAC 40 Slips Into Red In Cautious Trade

French stocks decreased on Thursday due to increasing uncertainty regarding potential Federal Reserve interest rate cuts and the progression of Israeli military action in Rafah. The market is also anticipating the results of a Bank of England policy meeting, expected later in the day, as it could provide further market direction.

The key French market index, CAC 40, fell by 12 points, or 0.2 percent, standing at 8,119. This comes after a 0.7 percent increase the previous day.

Despite the overall market decline, some French banks still managed to register slight gains. BNP Paribas, Credit Agricole and Societe Generale all saw an uptick, while car manufacturer Renault experienced a 1.5 percent boost.

In contrast, makers of luxury goods associated with China recorded a downturn, even though Chinese trade data for April was encouraging. The data showed Chinese imports exceeded estimates, while exports met expectations. Nevertheless, prominent fashion brands like LVMH, Kering, and Hermes saw their values drop by approximately 1 percent.