Stocks Stumble With U.S.
March 28, 2011
The CAC 40 index of actively traded French stocks closed at 1989.51, down 40 points in lively volume. The French market opened sharply lower Tuesday, with no domestic news to distract investors from Wall Street's plunge. The market was boosted slightly later in the day after the release of weaker-than-expected U.S. inflation data. U.S. June consumer price index rose a modest 0.1% from May, below economists' expectations of a 0.2% monthly pick up. Oil and gas companies Total and Elf Aquitaine, which are sensitive to dollar movements, suffered as the dollar weakened earlier in the day. Total lost 5.4 francs to 360, while Elf Aquitaine fell 4.3 francs to 355.3. Eurotunnel closed 20 centimes lower, down 2.2% at 8.75 francs, relinquishing most of its gains from Monday. Cerus slid 3.4%, or 3.2 francs, to 90.35. The stock began falling Monday on market speculation that it would cancel a convertible warrant issue due to lack of demand. The company has denied the rumors and said the issue will occur. Insurance companies UAP and Groupe des Assurances Generales, pharmaceutical company Fielding, luxury company LVMH and beauty products and pharmaceutical company L'Oreal all closed lower. Electronic equipment company Legrand was one of the few shares to remain in positive ground, recovering from losses at the end of last week.
