On Friday, French stocks saw a modest uptick, and the euro experienced slight gains against the U.S. dollar as trading recommenced post-Christmas. The CAC 40 index improved by 21 points, translating to a 0.3 percent increase, reaching 7,304 in what can be described as cautious market activity. The banking sector showed upward momentum, with significant players such as BNP Paribas, Credit Agricole, and Societe Generale advancing between 1 and 2 percent. This rise coincided with a surge in regional government bond yields.
In Germany, the 10-year bond yield climbed to 2.346 percent, marking its highest level since late November. This increase was driven by a rise in U.S. Treasury yields following a successful seven-year bond auction. Notably, the yield gap between French and German bonds widened, reflecting growing concerns about France's fiscal deficit.
France's newly appointed Prime Minister, Francois Bayrou, has committed to drastically reducing the national deficit, aiming for a target close to 5 percent of GDP. This goal is a continuation of efforts where his predecessor fell short.
The material has been provided by InstaForex Company - www.instaforex.com
In Germany, the 10-year bond yield climbed to 2.346 percent, marking its highest level since late November. This increase was driven by a rise in U.S. Treasury yields following a successful seven-year bond auction. Notably, the yield gap between French and German bonds widened, reflecting growing concerns about France's fiscal deficit.
France's newly appointed Prime Minister, Francois Bayrou, has committed to drastically reducing the national deficit, aiming for a target close to 5 percent of GDP. This goal is a continuation of efforts where his predecessor fell short.
The material has been provided by InstaForex Company - www.instaforex.com