PARIS (dpa-AFX) - After a weak start and a subsequent fall to lower levels, the French stock market recovered lost ground in late morning trades on Monday and looked on course to move past the unchanged line.
While lingering recession fears pushed stock prices down early on in the session, final data confirming an improvement in France's manufacturing activity in the month of May pulled the market out of lower levels.
The benchmark CAC 40, which dropped to a low of 5,152.30, recovered to 5,195.98, down just 11.64 points, or 0.22%, from previous close.
On Friday, the index ended with a loss of about 1.3%.
Legrand shares are down nearly 2.5%. Michelin, Peugeot, Capgemini, Valeo, ArcelorMittal, AXA, Accor and Credit Agricole are lower by 1 to 1.5%.
Meanwhile, shares of food major Danone are gaining 1.2% after the company agreed to sell its U.S dairy business Stonyfield to Lactalis for $875 million.
Worldline, Renault, Pernord Ricard and Air Liquide shares are up 0.5 to 1.2%.
On the economic front, France's final factory PMI rose to 50.6, as initially estimated in May, from 50.0 in April. Slower falls in both production and sales, as well as a rise in employment, saw the headline PMI reach its highest level in three months.
Eurozone manufacturing activity remained entrenched inside contraction territory in May, final survey data from IHS Markit showed.
The factory Purchasing Managers' Index came in at 47.7 in May, in line with flash estimate, but down from 47.9 in the previous month. The sector has shrunk over the last four successive months.
The PMI suggested that the sector will act as a drag on the wider economy in the second quarter, Chris Williamson, chief business economist at IHS Markit said.
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