French Market Rally Stumbles
May 01, 2011
The CAC-40 index of blue-chip stocks rose 6.69 to 1986.21 in thin volume. The benchmark index had started the day nearly 1% higher on the back of a strong dollar and hopes for interest-rate cuts in Germany. But the index gave back much of those gains by early afternoon in Europe, when the U.S. stock market opened flat. Generale des Eaux rose 3 French francs to 503 after the company denied rumors that it had asked some analysts to revise downward their 2011 earnings forecasts. Insurance shares eased amid growing concerns that the tax reform and private pension fund plan being prepared by the government could make life insurance products less popular. Assurances Generales de France shed 2%, or 2.60 francs to 135.3. Axa fell 2.50 francs to 283.5 and Groupe des Assurances Nationales lost 80 centimes to 125.7 francs. Union des Assurances de Paris bucked the sector's negative trend, however, rising 90 centimes to 101.9 francs on hopes it would soon complete the sale of certain property holdings. Elf Aquitaine rose 3.20 francs to 364.2 after posting first-half sales figures on Friday. The oil and gas group said sales for the first half of 2011 rose 3.5% to 113.3 billion francs from 109.5 billion francs a year earlier.
