Published on :
The Paris Stock Exchange remained misguided Tuesday at midday (-1.75%), in a climate clouded by a Covid-19 still very virulent and a renewed tension between Beijing and Washington.
At 12:50 p.m. (10:50 GMT), the CAC 40 index lost 88.42 points to 4,967.81 points. The day before, it had finished up 1.73%.
The Parisian rating has remained clearly in the red since the opening.
Wall Street was preparing to open slightly in the green. The futures contract for the flagship Dow Jones Industrial Average advanced 0.39%, the futures for the broad S&P 500 index 0.35% and the highly technological Nasdaq 0.23%.
“A backward step in the process of deconfinement in California and the rise of tensions in China” lower the actions in Europe and “the surprisingly good figures of the Chinese foreign trade were not enough to calm the markets”, summed up Neil Wilson, an analyst at Markets.com.
“Growing tensions between the United States and China over Beijing’s land claims in the South China Sea are weighing on morale” as is “the reintroduction of containment measures” as “many countries continue to fight against the Covid-19, “also said David Madden, an analyst at CMC Markets.
California and several other regions of the world, faced with an explosion in the number of infections, again adopt severe restrictions, while the WHO is alarmed to see “too many countries (going) in the wrong direction” and undermining public confidence for lack of clear messages.
The pandemic thus continues to worsen with around 13 million confirmed cases.
China also accused the United States on Tuesday of “sabotaging regional peace and stability”, after statements by foreign minister Mike Pompeo regarding Beijing’s claims as “illegal”.
Investors will watch the start of the earnings season in the United States with a series of heavyweights, especially banks Citigroup, Wells Fargo and JPMorgan Chase as well as those of Delta Air Lines.
In terms of indicators, imports from China registered a sharp rebound over one year in June (+ 2.7%), the inflation rate in Germany rose in June and industrial production in the euro zone returned to normal. up in May.
On the other hand, the Zew barometer of the confidence of the financial circles across the Rhine dropped slightly in July, putting a stop to the strong rebound started in April.
In the United States, the consumer price index (CPI) for June is also on the agenda.
– Tech in decline –
The decline of several major technology stocks on Wall Street on Monday was clearly felt in the sector in Paris: Dassault Systemes lost 3.83% to 151.90 euros, STMicroelectronics 5.07% to 24.55 euros, Soitec 5.03% at 100.10 euros and Worldline 4.14% at 74.58 euros.
The decline continued for Ubisoft (-1.55% to 72.50 euros) two days after a game presentation deemed disappointing by the market and while the publisher is struggling in a sexual harassment scandal.
Air France-KLM was down 1.51% to 4.04 euros. The group is at the heart of a diplomatic quarrel between Paris and Beijing which on Tuesday castigated France’s decision to limit Chinese flights to France to one per week, in the name of reciprocity vis-a-vis ‘Air France.
TFF Group sank 3.63% to 29.20 euros. The barrel manufacturer saw its annual profit fall during its staggered financial year 2019-2020, a result which it attributes in particular to the impact of the health crisis.
© 2020 AFP