The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended down on Tuesday, weighed down by the banking sector which suffered from a new tax announced in Italy and by disappointing data in China.
The star CAC 40 index dropped 0.69%, or 50.29 points, to 7,269.47 points. The day before, the Paris Stock Exchange ended almost stable (+0.06%) after a sluggish session.
Tuesday’s session got off to a bad start with the publication of China’s trade balance in July.
The Asian giant’s imports fell 12.4% in July year on year, a contraction much stronger than that of June (-6.8%) and than the forecasts of analysts polled by Bloomberg (-5.6%). ).
For Alexandre Baradez, analyst at IG France, “the level of imports surprised because it reflects weak domestic demand in China, and therefore there is a challenge for European and American exporting groups”.
China’s exports also slumped 17.2% in July, more than expected, and are experiencing their steepest decline since January-February 2020, when Chinese economic activity was virtually brought to a standstill from the start. of the Covid-19 pandemic.
The Italian government’s announcement of a 40% tax on banks’ “billion-euro surplus profits” then caused banking stocks to plunge.
BNP Paribas (-3.01% to 57.76 euros) recorded the largest drop in the CAC 40. Crédit Agricole lost 2.46% to 11.51 euros and Société Générale 1.70% to 25.12 euros.
“The real big surprise of the day comes from Italy”, underlines Alexandre Baradez. For him this decision is part of a trend of “budgetary normalization, after monetary normalization, that is to say that we must bring budgets back to more sustainable areas”.
A warning from rating agency Moody’s, which downgraded the rating of a dozen small US banks on Monday night, citing risks associated with their exposure to commercial real estate, added an additional dose of uncertainty. Several major US banks are also placed under surveillance by the rating agency.
Luxury on the decline
The values of the luxury sector, heavyweights of the CAC 40 and very sensitive to the Chinese economic situation, fell on Tuesday.
LVMH lost 1.25% to 807.20 euros, Hermès 0.99% to 1,897 euros and Kering 0.64% to 514.60 euros.
Drahi wants Altice France debt relief
Patrick Drahi, boss of the Altice group, announced on Tuesday that his “only priority” for his branch Altice France (SFR, BFMTV) was to reduce its debt, currently 23.8 billion euros.
In front of analysts, the businessman promised a significant reduction in the debt burden, in particular through the sale of non-strategic assets and a reduction in investments, while his telecoms and media empire is weakened by a scandal. corruption in Portugal.
Altice USA shares, the group’s only listed entity, lost 4.91% in New York around 6:10 p.m. (4:10 p.m. GMT).
© 2023 AFP
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