(CercleFinance.com) – The Paris Bourse is expected to open lower on Thursday, the penultimate session of the year which promises to be marked by low trading volumes and a resurgence of fears about the coronavirus.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – January delivery – lost 15.5 points to 6493.5 points, signaling an opening in negative territory.
After hovering around its balance point for a long time yesterday, the Parisian market had finally tipped into the red, ending the session with a decline of 0.6% around 6510 points.
Traditionally, global stock markets rise during the very last sessions of the year on the occasion of a phenomenon called ‘Santa Rally’ (end of year rally).
This expression refers to the rise of the S&P 500 index over the last five days of December and the first two days of January, which averages 1.3%, according to data from the Stock Trader’s Almanac.
But the S&P is currently down 1.6% since the beginning of the week, which seems to seriously compromise the scenario of a year-end with a bang.
Since the start of the year, the CAC 40 index has so far shown a decline of around 9%.
Asian markets ended in sharp decline on Thursday due to the worsening of the toll of the coronavirus in China, which revives concerns about the economic consequences of the epidemic.
With the return of fears linked to the coronavirus in China, where the number of infected people is climbing, investors should continue to sell equities and favor assets deemed safer.
It is therefore caution that dominates this end of the financial year in view of the persistent fears of a slowdown in the Chinese economy which could have repercussions on American economic activity, increasing the risks of recession while interest rates interest continue to climb.
In the absence of a technical recovery in this period of truce for confectioners, analysts at Kiplink Finance fear that the Parisian index will soon return to the area of 6476 points, its lowest point in December.
In terms of economic indicators, the agenda promises to be extremely light, even if this session will perhaps be seen as the busiest day of the week.
The exchanges will be punctuated, in the United States, by the weekly figures of registrations for unemployment benefits then by the publication of the traditional oil stocks.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
