The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down 0.42% on Tuesday on concerns over a deterioration in US-China relations as US House of Representatives Speaker Nancy Pelosi arrived in Taiwan for a frowned upon visit. by Beijing.
The CAC 40 index fell 27.06 points to 6,409.80 points, after a decline of 0.18% the day before, the first session of August.
Nancy Pelosi’s visit to Taiwan “was really the red thread of the day”, comments Alexandre Baradez, analyst for IG France, to AFP.
The symbol is indeed strong on the diplomatic level: Ms. Pelosi is the highest American official to visit Taiwan since 1997.
Investors fear that this will inflame tensions between the United States and China: Beijing has described the United States’ attitude as “extremely dangerous”.
The markets therefore remained cautious, avoiding the sectors most exposed to China, such as luxury.
After a very positive month of July on the markets, driven by better than expected corporate results, investors are once again focusing on the bleak macroeconomic situation, between inflation and fears of recession.
“We are in a situation of apprehension, but there is no panic”, summarizes Mr. Baradez.
Investors are waiting in particular for the publication of the ISM index of activity in services in the United States on Wednesday, which will allow them to refine their opinion on the extent of the slowdown in the American economy to come.
Luxury, heavy weight of the CAC 40, weighed on the index. French groups in fact generate a large part of their turnover in China.
Kering lost 1.70% to 543.50 euros and its competitors LVMH and Hermes dropped 1.35% to 679 euros and 1.30% to 1,330 euros respectively. L’Oréal for its part fell 1.48% to 363.80 euros.
Concerns about the geopolitical situation, on the other hand, benefited defense values.
The electronics group Thales took 0.92% to 126.25 euros while on the aviation side, Safran gained 0.21% to 107.14 euros.
French banks gained ground thanks to a rebound in interest rates on the debts of most countries. Banks are also benefiting from increases in central bank interest rates, which will allow them to lend a little more expensively.
BNP Paribas took 1.18% to 46.40 euros and Crédit Agricole 0.40% to 8.95 euros, while Societe Generale remained close to balance, at 0.02%.
© 2022 AFP
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