(BFM Bourse) – The Parisian index is moving up at midday on Monday, despite worsening tensions between Russia and Ukraine as well as concerns in Asia about the finances of Chinese property developer Country Garden Holdings.
The Paris Stock Exchange starts the week on a hesitant note. But it is gaining ground for the time being, the CAC 40 taking 0.32% to 7363.46 points at mid-session on Monday.
The Parisian index resists uninviting news. Geopolitics and the conflict in Ukraine are remembered in particular at the whim of investors.
Markets are monitoring “the situation in the Black Sea, after the control of a Ukrainian cargo ship by Russia on Sunday, which led [cette dernière] to fire, in order to force the boat to stop” which “puts a little more pressure on this essential route for the transport of raw materials in the region”, explains Vincent Boy, market analyst at IG France.
Thales biggest drop in the CAC 40
Added to this are fresh fears in China, where property developer Country Garden Holdings suspended trading in several bonds after failing to pay coupons on two dollar-denominated bonds last week. This while the group has a colossal debt of more than 190 billion dollars, according to Reuters.
Country Garden Holdings’ struggles weighed on Asian stock markets, with Hong Kong’s Hang Seng losing 1.6% and Tokyo’s Nikkei 225 slipping 1.3%. The group’s share price plunged 18.4%.
On the side of French values, if the majority of CAC 40 securities evolve in the green, Thales abandons 1%, penalized by the loss of a huge contract of its subsidiary Thales Alenia Space with the satellite operator Telesat.
Valneva for its part gives up 10.66%, undermined by the postponement of the target date for the end of the examination of its candidate vaccine against chikungunya by the American health authority.
On the other markets, the euro is almost stable against the dollar at 1.0949 dollars. Oil contracts are trending down slightly. The contract for October delivery on North Sea Brent fell 0.3% to $86.56 a barrel while that of September on New York-listed WTI fell 0.34% to $82.91 a barrel .
Julien Marion – ©2023 BFM Bourse