\n<\/p>\n
French stocks are modestly higher on Tuesday, continuing to benefit from U.S. President Donald Trump’s decision to delay tariffs on European Union goods. Data showing a less than expected increase in French consumer price inflation in the month of May is aiding sentiment. <\/p>\n
However, the market is moving in a very narrow range amid uncertainty about global economic growth due to the ongoing conflict between Russia and Ukraine, and a lack of meaningful progress in Iraq nuclear talks.<\/p>\n
The benchmark CAC 40 was up 17.03 points or 0.22% at 7,845.16 a few minutes ago.<\/p>\n
STMicroElectronics is gaining about 2.7%. Stellantis is up nearly 2%, while Thales, Schneider Electric and Airbus are up 1.3 to 1.5%.<\/p>\n
Edenred, Capgemini, Legrand, Publicis Groupe, Dassault Systemes, Eurofins Scientific, Carrefour, Sanofi, Safran and Kering are moderately higher.<\/p>\n
Veolia Environment, Essilor, ArcelorMittal, Bouygues, Orange and Renault are down 0.5 to 0.8%.<\/p>\n
Preliminary data from the statistical office INSEE showed France’s consumer price inflation moderated slightly in May to the lowest level in more than four years amid a slowdown in costs for services and a continued fall in energy prices.<\/p>\n
The consumer price index rose 0.7% on a yearly basis in May, slower than the 0.8% stable increase seen in April. Meanwhile, economists had expected inflation to rise to 0.9%.<\/p>\n
Further this was the lowest inflation rate since February 2021, when prices had risen 0.6%.<\/p>\n
On a monthly basis, consumer prices dropped 0.1% in May, reversing a 0.6% increase a month ago.<\/p>\n
EU-harmonized inflation also slowed to 0.6% from 0.9% in the prior month. Monthly, the HICP edged down 0.2% versus an increase of 0.7% in April. <\/p>\n
Data released by the European Automobile Manufacturers’ Association showed Europe new car registrations declined in the four months to April as uncertainty over the trade tariffs weighed on demand.<\/p>\n
New car sales fell 1.2% in the year-to-date period compared to the previous year. Among big-four economies, Spain reported a robust sales growth of 12.2% in the January to April period.<\/p>\n
Meanwhile, sales in Germany decreased 3.3% and that in France slid more sharply by 7.3%. Italy reported a moderate fall of 0.6%.<\/p>\n
However, Europe car sales rebounded 1.3% on a yearly basis in April, following a 0.2% fall in March. <\/p>\n<\/p>\n
Market Analysis<\/p>\n<\/div>\n