CAC 40 Declines On Uncertainty Over Rate Cuts

(RTTNews) - French stocks declined on Tuesday as traders pared back expectations on near-term rate cuts by the U.S. Federal Reserve and the European Central Bank.

French central bank Governor Francois Villeroy de Galhau said in Davos that it's too early to declare victory over inflation, but the ECB's next move is likely to be an interest rate cut sometime this year.

The benchmark CAC 40 was down 32 points, or 0.4 percent, at 7,379 after closing 0.7 percent lower on Monday.

In corporate news, Air France-KLM Group shares fell over 2 percent. The airline announced today its decision to withdraw from its existing air cargo agreements with CMA CGM, a French shipping and logistics company, from March 31, 2024.