CAC 40 down on Bank of France report
The prospect of France slipping into a period of recession during the third quarter of the year has resulted in investor confidence in the CAC 40 index declining today (August 10th).
According to the Bank of France, the European country is likely to experience moderate gross domestic product (GDP) contraction of around 0.1 per cent throughout this three-month period as the eurozone debt crisis rumbles on.
Policymakers in Paris set a growth target of 0.3 per cent for 2012 as a whole, but the Bank of France believes such expansion is now unlikely to materialise after the nation saw its GDP shrink by 0.1 per cent in quarter two.
"The outlook for the coming months suggests a slight slowdown in economic activity," the central institution noted.
On top of this prediction, new figures also showed that France's trade gap widened in June.
As such, the CAC 40 fell by around 0.60 per cent to a points level of 3,436 this afternoon.
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