CAC 40 Declines Amid Middle East Tensions

(RTTNews) - French stocks fell sharply on Friday after Fed officials warned that interest rate cuts may not be imminent.

Escalating geopolitical tensions also weighed on sentiment. Amid Iran's retaliation threat following the killing of senior Revolutionary Guard commanders in Syria, Israel has stepped up its military defense.

In economic releases, France's industrial production expanded less-than-expected in February after falling in the previous month, data from the statistical office INSEE showed today.

Industrial output rose 0.2 percent on a monthly basis, following January's 0.9 percent decline. The expected growth rate was 0.5 percent.

The benchmark CAC 40 was down 112 points, or 1.4 percent, at 8,039 after finishing marginally lower on Thursday.

Food services company Sodexo fell nearly 2 percent ahead of its earnings results.