The Paris Bourse is timidly trying to extend its rebound last week (+ 2.3%) in a market focused on the acceleration of contamination with the Omicron variant and its impact on the economy. The meeting is mainly characterized by the weakness of the activity in the absence of many speakers and lack of salient news, both in terms of the economy and businesses. In Europe, the London Stock Exchange is closed, as are the Hong Kong and Sydney stock exchanges in Asia. The end of the year promises to be heckling as central banks have adopted a less accommodating tone in the face of soaring inflation.
Financial centers have generally progressed last week, several studies suggesting that, if the Omicron variant is more contagious than the previous strains, vaccination can greatly reduce the risk of hospitalization. The health authorities nonetheless call for vigilance. ” Contaminations at Omicron are increasing in the United States and in Europe, and although the markets have integrated a less virulent strain, the disruptions in goods and services due to the isolation of employees, especially in the airline sector, seem to be the cause. main consequence for the moment Writes Jeffrey Halley, senior market analyst at Oanda.
Shortly before noon, the Cac 40 nibbles 0.19% to 7,099.79 points in a business volume of 420 million euros. In Frankfurt, the Dax takes 0.22% and the FTSE Eb Milanese 0.26%. The contracts futures March on American indices suggests a hesitant opening in New York. On Thursday, the S&P 500 hit a closing high to end within 0.4% of its all-time high. Wall Street was closed Friday, Christmas Eve.
Slowdown in industrial profits in China
The bar of 100,000 new coronavirus infections in 24 hours has been crossed in France. President Emmanuel Macron is due to hold a health defense council on Monday before presiding over a Council of Ministers during which new measures should be studied, and in particular the transformation of the health pass into a vaccination pass. Other measures should be addressed, such as reducing isolation times for infected people or simple cases of contact in order to limit the duration of sick leaves and their consequences on economic activity.
Asian markets traded in loose order this morning, with China’s CSI 300 closing in balance (-0.04%). Industrial profits rose 9% in China in November, the slowest pace since May due to a marked reduction in the margins of certain companies linked to the rise in production costs. The market, however, welcomed the prospect of new activity stimulus measures. The People’s Bank of China is indeed committed to supporting the real economy and preserving the rights of property owners. In addition, the president of Evergrande announced that he would deliver 39,000 buildings in December, reports Reuters.
Tourism under pressure
The tourism sector is declining likeADP (–1.5%). In the United States, more than 1,000 flights were canceled this weekend due to the unavailability of many pilots and crew members infected with the Omicron variant.
Tech stocks are also in the red. STMicroelectronics loses 0.9%, Soitec 0.6% and Worldline 1.9%.
Conversely, Sartorius Stedim Biotech earns 2.78%, Eurofins Scientific 1.5% and Sanofi 0.6%. Ipsen for its part takes 0.5%. The investment fund Parvus Asset Management Europe Limited has crossed the threshold of 5% of the capital of the pharmaceutical company, according to an opinion published by the Financial Markets Authority (AMF). As of December 21, Parvus held 5.01% of the capital and 3.18% of the voting rights of Ipsen.