The Paris Stock Exchange was down 1.35% in early trading on Tuesday, falling under the effect of fears about global growth.
The star CAC 40 index fell by 86.05 points to 6,272.69 points around 9:40 a.m. The day before, it had increased by 1.17%.
It’s still too early to return to the market, say Saxo Bank analysts, even if opportunistic purchases can still make sense, according to them.
They believe that the profit forecasts of many listed companies are still too optimistic in relation to the macroeconomic situation, and in particular the impact of inflation.
After the breath of fresh air on the indices on Monday, carried by the hope of a reduction in customs duties between China and the United States, geopolitical friction with the visit of American President Joe Biden to Asia and fears over global growth are back in the minds of investors.
In China, the government has announced a new salvo of measures, intended to put the economy back on track, according to the New China agency, in the face of the threat of a drop in activity due to confinements in the country’s major cities. . But that did not prevent the Chinese markets from being in the red.
In Europe, markets await PMI activity indicators for the month of May. Growth in the private sector in France slowed in May while maintaining a high level thanks to the dynamism of services, according to a provisional index published Tuesday by S&P Global.
However, this indicator of economic activity is losing its credibility in the current context, judge Michael Hewson of CMC Markets. Looking at them, it would be tempting to think that all is well, but it is obvious that economic growth is in trouble.
In France, the business climate was stable in May, with an improvement in services and retail trade offsetting a deterioration in industry, construction and wholesale trade, INSEE reported on Tuesday.
The markets are also awaiting a speech from ECB President Christine Lagarde on Tuesday.
Capital increase for Air France
Retirement : save by paying less tax. 11 contracts compared
The Air France-KLM airline group announced on Tuesday the launch of a new capital increase of 2.26 billion euros, hoping to put an end to the Covid-19 crisis which had devastating effects on its activity and its finances. .
The French and Dutch states wish to take part in this operation and keep the same level of capital, while the two other main current shareholders, the Chinese companies China Eastern and the American company Delta Air Lines, will see their participation reduced in favor of a new entrant, the French shipowner CMA CGM, which will invest up to 400 million euros, specified the company in a press release.
The action plunged 6.26% to 4.08 euros. On the CAC 40 index, the equipment manufacturer Safran was the largest drop, 2.85% to 93.39 euros. Airbus also fell by 2.05% to 104.98 euros.
Banks drop some gains
After their strong rebound the day before, following statements by Christine Lagarde, French banks were more mixed: BNP Paribas lost 1.46% to 51.38 euros, Crédit Agricole 0.54% to 10.72 euros but Socit Gnrale took 0, 06% 25.55 euros.