PARIS (Reuters) – The main European stock markets hesitated on Tuesday at the start of the session, between the progress of Sanofi in Paris, the decline in values of the chemical industry and concerns about the economy in China.
In Paris, the CAC 40 nibbles 0.03% to 7,316.31 points at 07:47 GMT. In London, the FTSE 100 took 0.12% and in Frankfurt, the Dax fell 0.31%.
The EuroStoxx 50 index is down 0.01%, the FTSEurofirst 300 0.09% and the Stoxx 600 0.09%.
In a highly anticipated decision, the People’s Bank of China announced a ten basis point cut in two benchmark rates.
This new measure, intended to revive a slowing economy, is weighing on market sentiment as many observers expected a bigger drop for the five-year rate.
“I don’t think the rate cuts are going to move the situation,” said Redmond Wong at Saxo Markets, adding that a 15 basis point cut would have sent a “stronger message” that could have improved sentiment in the Chinese real estate sector.
As for the values that stand out on the Paris Stock Exchange, the Sanofi laboratory gained 2.37%, taking the lead in the CAC 40, after the rejection by an arbitrary court of the request for compensation from Boehringer Ingelheim in the context of the dispute in courses in the United States on Zantac.
Neoen, which raised its forecast for adjusted gross operating surplus (Ebitda) to more than 700 million euros for 2025, takes 4.33%.
Conversely, German group Lanxess fell 15.23% in Frankfurt after lowering its EBITDA forecast for the second quarter and the full year citing persistently very weak demand.
In its wake, the European chemical sector fell by 1.67%. Clariant, BASF and Covestro drop from 2.51% to 6.13%.
(Laetitia Volga, edited by Blandine Hénault)
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