The Paris Bourse returned to losses (-2.69%) Thursday morning, investors worried about the spread of the coronavirus epidemic in the United States, despite the adoption the day before of a historic recovery plan by the United States Senate.
At 09.20 (08.20 GMT), the CAC 40 index fell by 119.08 points to 4.313.22 points. The day before, it had finished up sharply by 4.47%.
“The negative trend of the morning is to be attributed to the almost uncontrolled spread of the virus in the United States and in particular in New York, which is confining itself more and more,” underlined in a note John Plassard, specialist of the investment at Mirabaud.
Wednesday, European markets had yet “recorded their second session of decent gains, helped by the prospect of higher stimulus spending”, especially in Germany and the United States, said Michael Hewson, an analyst at CMC Markets.
The US Senate unanimously approved on Wednesday a “historic” plan of 2,000 billion dollars to support the first world economy, asphyxiated by the coronavirus pandemic which has already infected nearly 70,000 people and has killed more than 1,000 people in the United United.
“But market reaction could remain limited,” said Vincent Boy, market analyst at IG France.
Indeed, according to him, “the equation is taken upside down in the United States and the more the American administration will drag to focus on the real problem, the virus, the more the latter will have to multiply the support measures without real effect in the short term or at least until the epidemic is contained. ”
With two thirds of the victims, Europe pays the heaviest price to the coronavirus and it was particularly heavy Wednesday in Spain, which exceeded China in number of deaths. However, it is in the United States that contagion is growing most rapidly.
In addition, investors were now anxiously awaiting the latest figures from weekly claims for unemployment benefits in the United States.
“The number of unemployed registrations (is) expected to be around 1.64 million according to the Bloomberg consensus and 1 million according to that of Reuters, an increase which has never been observed, even during the crisis of 2008”, noted Mr. Boy.
As for the rest of the indicators, German consumer sentiment should collapse in April after a first drop in March, according to the GfK barometer.
In France, the business climate fell “heavily” in March, yielding 10 points compared to February, its sharpest decline since the launch of this indicator in 1980.
The latest estimate of US growth in the 4th quarter should also be scrutinized, as well as the Bank of England (BoE) monetary policy meeting.
Finally, G20 leaders hold a virtual summit on Thursday to coordinate their response to the threat of recession posed by the new coronavirus on the global economy.
– Ipsen well oriented –
On the value front, Ipsen gained 1.14% to 48.02 euros, strong from the announcement Thursday of the upcoming resumption of its clinical trials related to palovarotene, for patients over 14 years old with rare bone disease progressive ossifying fibrodysplasia (FOP).
ADP took 0.39% to 104.10 euros. Orly airport will temporarily stop its activity as of March 31, victim of a collapse of more than 90% of air traffic due to border closings linked to the spread of coronavirus, the manager announced on Wednesday .
However, Casino lost 2.24% to 33.66 euros while the distribution group, which posted a net loss of more than 1.4 billion euros in 2019, announced Thursday that it was suspending its financial targets for 2020 due to the coronavirus pandemic.
JC Decaux, for its part, fell by 2.36% to 16.57 euros after renouncing its forecasts for the first quarter on Wednesday, when it already expected a drop in income in the face of the coronavirus crisis, and having warned that the second would be even worse.
jra / jld / spi