European stocks edged higher on Tuesday ahead of US CB Consumer Confidence. French CAC 40 index was up by more than 0.40% after the release of the French Consumer Confidence for June. UK’s FTSE 100 index inched higher after the release of its House Price Index Data. Other European indices like Euro STOXX 50 as well as Germany’s DAX index were also on the rise.
French Economic Outlook
The CAC 40 index inched higher on Tuesday after better-than-expected French Consumer Confidence. The French Consumer Confidence was hovering at its highest level since March 2020. It jumped to 102 in June from 98 in the previous month. It surpassed the market forecast of 100.
Household shares increased significantly in June with the easing of lockdown restrictions. The shares gained 10 points hitting its highest level since February 2018.
The households’ opinion balance related to their future financial situation gained six points. It spiked to its highest level since June 2007.
In June, the household shares considering that the standard of living in France will improve in the next 12 months, increased significantly. The corresponding balance gained eight points and was at its highest level since December 2017.
Households’ fears on unemployment trend fell sharply in June to its lowest level since the start of the pandemic. Households’ shares considering that the prices will increase in the next twelve months have been slightly lower in May.
United Kingdom’s House Price Index for June slipped. The index came in at 13.4% YoY which was weaker than the estimated forecast of 13.7%.
Global investors are eyeing the US Consumer Confidence which is due later in the day. They are hoping to get clues on whether the Federal Reserve will be tapering its monetary policy earlier than expected. The US CB Consumer Confidence is the Fed’s favorite number as it reflects the rate of economic expansion.
CAC 40 Movers
Saint Gobain was the best performer in the CAC 40 index. The manufacturing company gained more than 2.36% in its stock earnings. the company announced that its sales have been on an upward trend. Société Générale and BNP Paribas were also among the top performers. Each gained 2% and 1.7% respectively.
WFD Unibail Rodamco was the worst performer in the index. The real estate company lost 1.90% in its stock price. Other laggards include Dassault Systemes and Carrefour. Each declined by more than 1.7%.