The Paris Stock Exchange in red, worried about the evolution of the protest in China


The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)

The Paris Stock Exchange ended down (-0.70%) on Monday, worried about the evolution of the situation in China, where demonstrations of historic proportions are being held against the zero-Covid policy of the second world economy.

The star CAC 40 index lost 47.28 points to 6,665.20 points. On Friday, it had finished close to equilibrium (+0.08%) at 6,712.48 points, concluding its eighth consecutive weekly increase.

“The protests in China, which have caused a drop in oil prices but also raised fears about supply chains which will be further disrupted”, worried investors during the session, reported Philippe Cohen, analyst at Kiplink. .

“Despite the passage of time and what other countries have accomplished, it would appear that China is not prepared for a meaningful easing of restrictions, which could mean that frustration continues to simmer,” Craig noted. Erlam, analyst at Oanda.

Triggering factor of this movement: a fire which caused the death of ten people on Thursday. The event sparked anger among Chinese citizens, who said health restrictions have hampered relief efforts.

By its extent, this mobilization evokes the pro-democracy rallies of 1989, harshly repressed.

“The other event of the session was the speech of (the President of the European Central Bank) Christine Lagarde, who believes that the peak of the rate hike has not yet been reached”, added Philippe Cohen.

According to Ms Lagarde, the “top economists” within the ECB still see the risk of “rising” inflation. In this context, interest rates “are and will remain the main tool in the fight against inflation”, she stressed.

Across the Atlantic, the US central bank (Fed), which started raising rates earlier and more aggressively, now believes that a slower pace of rate hikes may “soon be appropriate”.

Airbus, last to land

The title of the aircraft manufacturer Airbus fell by 5.68%, to 107.36 euros, “because of market rumors about delays in delivery” of aircraft in 2023, but also because the group made the choice “to wait until December 2, when the order book is published”, to respond to the rumours.

The values ​​of luxury divided

Luxury stocks did not take the same direction at the close. While Hermès gained 1.18% to 1,496.00 euros, LVMH dropped 0.21% to 698.70 euros and Kering ended around the losing balance -0.02% to 545.20 euros.

© 2022 AFP

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