(BFM Bourse) – The CAC 40 lost ground in mid-session. While the People’s Bank of China has cut key rates, the market is waiting for government action that has yet to materialize.
The Paris Stock Exchange is still on the ropes on Tuesday. After having lost 1% the day before, the CAC 40 continues its correction, losing 0.4% to 7283.36 points.
The market is waiting for catalysts to get back on the upside. Which won’t come from China, at least not right away.
The People’s Bank of China certainly reduced two benchmark rates on Tuesday to encourage investment and thus stimulate activity. But since last week press reports have reported plans by the Chinese executive to revive the economy, especially real estate. However, this information is slow to materialize.
Chinese Premier’s Tour
“The lack of additional details on China’s stimulus package, as well as additional pressure on rates due to uncertainty over further rate hikes and a slowing global economy, have led investors Europeans to take profits slightly,” notes Michael Hewson of CMC Markets.
An announcement of stimulus measures from the Chinese government is unlikely before Chinese Premier Li Qiang returns from a European tour, according to AFP.
“High government debt and limited fiscal capacity make it virtually impossible for (Chinese) lawmakers to provide meaningful policy stimulus that could help prolong the growth cycle and rekindle confidence in the economy and markets. of assets,” said Stephen Innes of SPI Asset Management.
Sanofi, the glow within a moribund CAC 40
As for values, Sanofi alone or almost supports the CAC 40 with an increase of 3%, benefiting from a favorable decision against Boehringer Ingelheim in the context of the Zantac file.
Vinci and Eiffage both recovered around 0.9% after falling on Monday, the government studying the possibility of introducing a surcharge on motorway concession companies, provided that this taxation also applies to other concessions, such as airports . The Minister of the Economy, Bruno Le Maire, confirmed on Tuesday that this track was being explored.
Neoen stands out, taking 4.4%. The renewable energy producer with a name in palindrome has raised its gross operating profit (Ebitda) target for 2025, after obtaining a major contract in Australia.
On the other markets, the euro is stable against the dollar. Oil is moving up slightly. The August contract on North Sea Brent is up 0.9% at 76.80 dollars a barrel while that of the same expiry date on Korean WTI in New York gains 0.4% at 72.09 dollars a barrel .
Julien Marion – ©2023 BFM Bourse