The Paris Stock Exchange is down 0.11% in the first trade on Tuesday, investors showing disappointment with stimulus measures in China, and cautious after the meetings of the European and American central banks last week.
The star CAC 40 index fell by 7.75 points to 7,306.30 points around 9:25 a.m. The day before, it had fallen by 1.01%.
The lack of details on China’s stimulus package, additional interest rate pressures from uncertainty about further central bank rate hikes and a slowing global economy have led European investors to take their profits, comments Michael Hewson, an analyst at CMC Markets.
On Tuesday, China’s central bank stepped in to boost struggling growth in the world’s second-largest economy: it cut two benchmark rates, after several similar moves in recent weeks.
Highly followed by the markets, these two rates are now at historic lows. They had been reduced the last time in August 2022, but an even steeper drop was expected by investors.
Targeted fiscal support is likely needed because cutting rates when investment and consumption weaken due to a crisis of confidence may not yield much, said Swissquote analyst Ipek Ozkardeskaya.
Luxury stocks, as well as the mining company ArcelorMittal, whose prices are more influenced by events in China, fell more sharply than the CAC 40.
Like Monday, few events are expected by investors, apart from a few speeches from central bank officials and real estate statistics in the United States.
On Wednesday, US central bank chairman Jerome Powell will begin a two-day hearing before the heavily scrutinized US Congress.
Sanofi wins Zantac arbitration
The pharmaceutical laboratory Sanofi won 2.28% 96.64 euros Paris after a final arbitration rendered indicating that it would not be forced to compensate another laboratory, Boehringer Ingelheim, for damages which would be caused by the long-term legal proceedings launched regarding the heartburn drug Zantac in the United States.
Patients accused several laboratories including GSK, Sanofi and the American Pfizer of having contributed to their cancer by selling Zantac.
Thinning for Neoen
The renewable energy producer Neoen has announced that it is revising its profitability target for the 2025 financial year upwards, with an adjusted EBITDA which exceeds 700 million euros and no longer exceeds 600 million euros after a contract won in Australia. The action climbed 5.01% to 30.58 euros, even if it still lost more than 10% since the start of the year.