Renault

European stocks opened markets lower indicating a weak ending of the month. French CAC 40 index limped after the release of its GDP for the second quarter. UK’s FTSE 100 index, as well as Germany’s DAX index, dipped more than 1%. Euro STOXX 50 index was also in the red.

French Inflation Outlook

French CAC 40 index edged lower after the release of its Gross Domestic Product (GDP) for the second quarter. The French GDP for the second quarter of 2021 rebounded at 0.9% after stabilizing in the first quarter.

Final internal demand, less inventory changes contributed to the GDP growth in the second quarter. Imports advanced 1.9% while exports rose 1.5% in the same quarter. Foreign trade inched slightly lower dragging the GDP.

The Consumer Price Index (CPI) for July 2021, rose 1.2% YoY. However, the growth in consumer prices eased compared to the 1.5% increase in the previous month. The decrease in inflation was a result of a decline in manufactured goods prices.

There was also a slowdown in the prices of services. However, the rebound in food and energy prices offset the losses. The consumer prices remained unchanged at 0.1% MoM.

France Consumer Spending in June, advanced 0.3% MoM which was weaker than the estimated 1.4% advance. It was also a dip from the 10.4% increase in the previous month.

The European Consumer Price Index (CPI) for July will be released later in the day. Analysts expect the consumer prices to slightly increase to 2.0% from the previous 1.9%. The European quarterly GDP will also be released later today. It is expected to jump 1.5%.

CAC 40 Performers

Renault was the best performer in the CAC 40 index. The French automobile manufacturer gained 3.37% in its stock earnings. The company posted strong earnings report for the first half of 2021. The carmaker reported a net income of €368 million after a €7.4 billion loss a year ago.

Orange was also among the top performers in the index. The French multinational telecommunications company advanced 1.77% in its stock earnings. On Thursday, the company announced the launch of its initial public offering of common stock.

Atos was the worst performer in the index. The computers and information technology company lost 2.11% in its stock price. The company recently acquired three technology companies in US and Europe.

Carrefour was also in the red on Friday after it recently announced its plans to buy back an extra €200 million worth of shares. The French retail company’s stock earning dived 2.00%.

Saint Gobain was also among the laggards in the index. The manufacturing company lost more than 1.29% on Friday after releasing its earnings on Thursday. The company’s earnings for the second quarter beat analysts’ estimates while its revenue topped expectations.

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