CAC 40 Support as Yields Surge

French stocks advanced on Tuesday after reports emerged that Ukrainian President Volodymyr Zelensky was prepared to discuss a commitment from Ukraine not to seek NATO membership in exchange for a ceasefire, the withdrawal of Russian troops and a guarantee of Ukraine’s security.

Also, investors appeared to take in stride Federal Reserve Chair Jerome Powell’s comments Monday that the U.S. central bank was prepared to raise rates aggressively, if needed.

U.S. Treasury yields have risen to their highest level since 2019 and Euro zone government bond yields followed suit after Powell’s hawkish comments.

The benchmark CAC 40 was up 50 points, or 0.8 percent, at 6,632 after declining 0.6 percent on Monday.

Banks led advances, with BNP Paribas, Credit Agricole and Societe Generale all rising over 2 percent.

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