(BFM Bourse) – The Paris Stock Exchange is in the wrong direction on Tuesday, penalized by the decline in its banking sector and after the publication of disappointing Chinese statistics. The CAC 40 lost 0.7% below 7300 points.
Risk aversion is back on the Paris Stock Exchange after the publication of disappointing macroeconomic data on Chinese foreign trade last month. The withdrawals observed in the European banking sector also limit risk taking.
In this context, the trend is bearish in Paris with a CAC 40 which lost 0.7% back below 7300 points, to 7267.23 points. The day before, the Parisian index had closed not far from equilibrium (+0.06%), after a session without relief.
This morning, operators therefore learned of a stronger than expected deterioration in Chinese foreign trade in July. Exports in the country fell 17.2% last month, their steepest decline since the start of 2020. Year on year, they contracted 14.5% against a consensus forecast of 12.5% . Imports are not doing any better, and have plunged 12.4%, where a fall of only 5% was expected by the markets.
“The trade figures highlighted the weak external and domestic demand facing the Chinese economy,” CBA analysts were quoted by AFP as saying. Above all, these data revive the concerns of the markets about the prospects for growth in the global economy.
The banking sector under pressure
The decline in the banking sector also calls for caution after the announcement of a surprise tax on the “superprofits” generated by transalpine establishments. Concerned by the measure, the Italian banks take the hit in Milan, Bper Banca drops 9.5%, Finecobank plunges 9% when Monte Paschi Siena gives back 8.8%, at midday.
They lead in their decline, the French banks Crédit Agricole (-3.4%) and BNP Paribas (-3%), more exposed to the Italian market where Societe Generale yields 2.1% The banking sector was in the sights of investors with the degradation by Moody’s of the rating of several financial institutions in the United States, Monday evening.
Luxury stocks gave up some ground after the publication of disappointing data on Chinese foreign trade. Hermès gives back 1.4%, LVMH loses 1.1% when Kering contains its decline to 0.6%.
Excluding sectoral movements, business news is limited during this summer break. We can cite Eutelsat, which contracted by 0.9% after signing several contracts with the Brazilian AVS.
On the foreign exchange market, the euro yielded 0.3% to 1.0971 dollar against a greenback which benefits from its status as a safe haven. Oil prices are clearly on the downside, undermined by concerns about Chinese demand after the publication of disappointing foreign trade figures. A barrel of Brent from the North Sea, for delivery in October, gives back 1.6% to 83.94 dollars. The barrel of West Texas Intermediate (WTI), for delivery in September, loose 1.55% to 80.67 dollars.
Sabrina Sadgui – ©2023 BFM Bourse