The Paris Stock Exchange lost 0.96% on Monday, as the decline in prices deepened at the end of the session after the publication of a weaker than expected US services indicator, underlining the uncertainty around the growth in the world.
The star CAC 40 index lost 69.78 points to finish at 7,200.91 points. Last week, it had fallen by 0.66%, despite a rebound during the last session.
The decline is sharper than for other European markets, in particular due to the weight of luxury, where the decline is significant, in the CAC 40 index.
We must put today’s meeting in perspective with that of Friday, where particularly strong job creation in the United States had carried investors, enthusiastic about the dynamism of the American economy, explains Emmanuel Auboyneau, associate manager at Amplegest.
But, from one figure to another, the market hesitates, he continues. On Monday, investors learned that activity in services in the United States barely progressed in May, slowing sharply due to weaker demand, and disappointing analysts who saw it climb stronger than in April.
We do not have a clear view of growth and inflation, continues Mr. Auboyneau.
In France, activity in the private sector increased slightly in May, still driven by the dynamism of the service sector which compensated for the sluggishness of industry, confirmed the firm S&P Global on Monday.
The rebound in industrial production in April does not hope for an acceleration of economic growth in the second quarter, said Charlotte de Montpellier, economist at ING.
The week promises to be rather calm in terms of indicators as well as in terms of interventions by members of the American Central Bank, who must remain silent before the monetary meeting on 13 and 14 June.
This meeting is now focusing the attention of investors, who are wondering whether the monetary institution will stay the course it started in early May by keeping its key interest rates stable, for the first time after more than a year of continuous increases, or whether it will make a further rise.
On the bond market, interest rates for French loans rose, in unison with the rest of Europe, after the decision by the rating agency S&P Global to maintain France’s credit rating. The interest of the 10-year loan amounted to 2.91%, against 2.85% on Friday.
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Values exposed to China fall
Companies exposed to China, such as the luxury and spirits sectors, finished at the bottom of the CAC 40. 20 euros.
For several months, the power of the rebound in growth in China after months of confinement has been questioned, some analysts fearing that the market has overestimated it.
Cautious attitude
Defensive stocks, more sought after in the event of fears about growth because their revenues are less dependent on the economic situation, held up better: Orange gained 1.62% to 10.80 euros, Sanofi 0.37% to 95.33 euros and Carrefour 0 .17% 17.35 euros.