FX.co ★ CAC 40 Dips With Rate-cut Bets Back In Focus

French stocks remained muted on Thursday as the subdued U.S. consumer inflation data brought potential Federal Reserve rate cuts back into the spotlight.

In closer proximity, the European Central Bank is broadly anticipated to commence an interest rate reduction campaign from June, aiming to reduce rates from record highs with economists predicting up to three cuts this year.

The CAC 40 benchmark index declined by 30 points, or 0.4 percent, reaching 8,209, after having gained 0.2 percent in the previous session.

The U.S. dollar weakened, while U.S. Treasury yields fell to six-week lows ahead of scheduled speeches by various Federal Reserve officials later in the day.

Banking giants BNP Paribas, Credit Agricole, and Societe Generale all experienced a decline of approximately half a percent.

Automaker Renault saw its shares decrease by 0.6 percent.