The Paris Stock Exchange fell sharply on Monday morning, weighed down by fears about the spread of the Omicron variant and its potential consequences on economic growth. The World Health Organization (WHO) said the number of cases doubled in just 1.5 to 3 days in infected areas.
Wall Street, which ended in the red on Friday, and the pullback in Asia this morning (China’s decision to lower its prime lending rate, for the first time since the start of the epidemic, being widely anticipated) are of no help.
By mid-morning, the Cac 40 dropped 2.08%, to 6,782.88 points. The only increase in the Cac 40, the world number one in bioanalysis Eurofins Scientific gains 2.2%. Another value surrounded in the event of a deterioration of the health situation, Sartorius Stedim takes almost 3%, the largest increase in the SRD. bioMérieux 1.7% advance.
Omicron ” unleashed ” worldwide
This Sunday, the Netherlands reintroduced strict containment until mid-January while France decided to curb outdoor festivities in the Christmas-New Year period. Italy, she could impose the wearing of the mask outside and would consider a shortening of the validity of vaccine passports.
In the United States, Anthony Fauci has said further containment is unlikely but the White House special advisor on the pandemic sees the hospital system under pressure. Omicron ” unleashed Around the world, he said over the weekend. It has already been identified in more than 80 countries and could become dominant in Europe by mid-January, according to the European Commission. In the United States, Omicron has been detected in 43 of the 50 states.
What to raise uncertainties about growth. Goldman Sachs lowered its expectations for 2022 for the United States, as did the Banque de France this morning. If it raised its forecast for this year to 6.7%, it only expects a 3.6% increase in GDP in 2022 due to tensions on supplies and the resurgence of the Covid-19 pandemic in France. This Monday morning, the barrel of Brent fell by nearly 3%.
We’re talking about the Biden plan again …
Add to that a new episode in President Joe Biden’s long attempt to pass his $ 2,000 billion stimulus package. This is indeed endangered after the statements of Senator Manchin, who intends to oppose this law, worrying about its impact on inflation and debt. His vote is decisive in a Senate with a very narrow Democratic majority.
The economic program of the day is very light. In the afternoon, we are simply waiting for the composite index of leading indicators from the Conference Board for the month of November.
Several disposals on the business side
Among other values, BNP Paribas will sell to the Bank of Montreal its subsidiary Bank of the West, which operates its commercial banking activities in the United States, for an amount of 16.3 billion dollars (approximately 14.5 billion euros). The action showed the only rise of the Cac 40 at the opening. It is now losing 0.6%.
Klépierre (-3.4%) he sold two assets in France and Germany for a total amount of 345 million euros. The other large commercial real estate company, Unibail-Rodamco-Westfield, sold a complex in Stockholm to the Alecta fund for just over 270 million.
Icade (-2.3%), for its part, bought three retirement homes in Orpea for 57 million euros.
At the SRD, Ipsen (-7%) continues to decline.