U.S. Data Lift Stocks
May 19, 2011
The CAC 40 index of most actively traded shares gained 8.52 points to 2004.75. Volume was light at 3.50 billion French francs worth of shares traded. U.S. nonfarm payrolls in August showed a rise of 250,000 jobs and a drop in the unemployment rate to 5.1%. Traders said news that the French government will cut 25 billion francs in income taxes in 2012 and 75 billion francs over five years came as little surprise. They added that proposed pension fund reform would eventually aid the stock market, something concrete needed to be seen before investors got excited. The government proposed the establishment of private pension funds, which would allow contributions to be tax deductible. The details of the plan have not yet been put forward. Nonvoting shares in troubled bank Credit Lyonnais were the day's biggest gainers after reports that the government is close to agreeing on a new rescue plan for the bank. Credit Lyonnais investment certificates climbed 17.9 French francs higher, or 16%, to 130.9 francs a share. Auto-parts maker Valeo rose 16.6 francs to 279.1 after reporting late Thursday that net profit for the first half of 2011 rose 4.3% to 656 million francs. The shares also received a speculative push on recent reports that France's Cerus, which holds a 27.4% stake in Valeo, could find a buyer for that stake by the end of September. Cerus moved up 9 to 118.8 francs a share.
VastPress 2011 Vastopolis
