The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange closed Tuesday down 1.22%, gloomy after the publication of poor indicators of manufacturing activity in China and the United States.
The star CAC 40 index fell 91.70 points to 7,406.08 points, ending its first session of the month in the red after July up 1.32%.
“What still marks the market are the statistics in China considered worrying and which reflect the difficulty of the country to rebound from the pandemic”, notes Alexandre Baradez, analyst of IG.
In detail, manufacturing activity in China contracted in July for the first time in three months, weakened in particular by weak demand abroad for Chinese products, according to the purchasing managers’ activity index. (PMI) released overnight from Monday to Tuesday.
The government had published the day before a list of 20 points supposed to support consumption, but “these are support measures, not recovery measures”, regrets Alexandre Baradez, explaining that the market is waiting at this stage for a concrete intervention from the Chinese government. .
Investors then attended the publication of the German manufacturing PMI for July, “which is at the lowest level since the Covid crisis”, explains the analyst.
At 4 p.m., the Parisian index, which was already in the red, continued to fall after the publication of manufacturing activity in the United States, which contracted in July for the ninth month in a row, according to the data from the professional federation ISM.
The index stood at 46.4%, lower than what was expected by analysts (46.9%).
However, these indicators, a reflection of manufacturing activity, “send a message about global growth” and “raise fears about the level of consumption”, notes Alexandre Baradez.
Luxury in red
Sensitive to the Asian market, luxury stocks fell back on Tuesday, unconvinced by the announcements of support from the Chinese government. LVMH fell 2.25% to 829 euros, Hermès dropped 1.94% to 1,977.40 euros and Kering 0.99% to 518.40 euros.
Happy Euroapi shareholders
Former entity of the pharmaceutical group Sanofi, Euroapi saw its turnover increase by 2.6% in the first half, to 496.6 million euros, and continues to forecast an increase in turnover of between 7% and 8% for the 2023 financial year. Its share price soared by 17.06% to 12.42 euros.
Roller coaster for Atos
The French computer group Atos will entirely sell its historical activities to the Czech businessman Daniel Kretinsky, who will also invest in the other part of the French computer group.
On the Paris Stock Exchange, the action jumped more than 13% in the morning and gradually ran out of steam during the day, finally ending on a fall of nearly 4% to 9.07 euros.
© 2023 AFP
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