CAC 40 Gains After Fed Meeting

French stocks traded higher on Thursday after what was seen as a dovish FOMC meeting, with the U.S. central bank signaling it is on track to cut interest rates by three-quarters of a percentage point in 2024.

Meanwhile, investors shrugged off flash survey data from S&P Global showing that France's private sector activity contracted further at the end of the first quarter on faster fall in output and demand.

The HCOB composite output index slid to 47.7 in March from a nine-month high of 48.1 in February. Economists had forecast the reading to improve to 48.6.

Although the decline was faster than in February, the drop was the second slowest over the current ten-month downturn.

The benchmark CAC 40 was up 47 points, or 0.6 percent, at 8,208 after falling half a percent the previous day.

Veolia Environnement rose about 1 percent after it was selected by the Greater Paris Water Authority to manage its public drinking water for 12 years starting in 2025.

Automaker Renault added 0.8 percent as industry data showed new car sales in the EU rose for the second straight month in February on the back of strong demand among four major markets, especially in France and Italy.

New car registrations grew 10.1 percent year-over-year to 883,608 units in February, according to monthly data from the European Automobile Manufacturers' Association.

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