(BFM Bourse) – The CAC 40 is moving down sharply at mid-session on Monday. The market takes its profits as Washington accused a Chinese air balloon of engaging in espionage activities, which Beijing denies.
After finishing with a bang last week, the Paris Bourse is starting the news under much less favorable auspices. The CAC 40 thus fell by 1.44% at mid-session to 7,129.95 points.
Sino-American tensions weigh. The United States shot down a Chinese balloon that had been flying over their soil for several days on Saturday, calling it a “spy” balloon, which Beijing denies, assuring that it was a weather surveillance aircraft that had deviated from its trajectory.
The Chinese government said on Monday that the United States had “seriously affected and damaged” relations between the two countries and the head of American diplomacy Antony Blinken postponed his visit to Beijing.
An “excuse” to consolidate
“This renewed tension between China is the perfect excuse for the market to consolidate when the news of the week will be mainly driven by corporate results,” said Christopher Dembik, head of economic research for Saxo Bank.
“It’s the perfect element to take your gains”, abounds Alexandre Baradez, analyst at IG France. “There are also the consequences of Friday: the rate on [l’obligation souveraine américaine] to two years has recovered markedly after a better than expected employment and ISM manufacturing index. Market expectations for the move in Federal Reserve rates have shifted sharply: the market was expecting a 30% hike of 25 basis points (0.25 percentage points) in May, this figure then rose to 60 %” he continues.
As for values, Rotschild & Co jumped 17% as the Rotschild family decided to launch a simplified takeover bid with a view to removing the investment bank from the Parisian rating.
Orpea continues its descent into hell
Orpea continues its plunge (-9.6%) with a fall of nearly 65% over the last five sessions after an agreement on financial restructuring was reached. The dilution of more than 99% is gradually digested by the market.
More broadly, red is appropriate for all CAC 40 stocks with the exception of Eurofins (+0.14%).
On the other markets, the euro lost 0.3% against the dollar at 1.0763 dollars. Oil contracts are moving up slightly. The April contract on Brent from the North Sea for delivery in April, takes 0.5% to 80.33 dollars a barrel while that of March on the WTI quoted in New York advances by 0.4% to 73, $66 a barrel.
Julien Marion – ©2023 BFM Bourse