The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / Eric PIERMONT)
The Paris Stock Exchange was down 0.54% on Monday, worried about the continuation of the demonstrations in China which could create economic and social unrest in the second world economy.
The star CAC 40 index fell 37.27 points to 6,675.21 points around 9:40 a.m. Friday the index had ended stable and experienced an eighth consecutive week of increase.
“Despite the increase in Covid cases and the renewal of Covid measures, thousands of Chinese citizens have gathered to show their dissatisfaction with Xi Jinping’s Zero Covid strategy, which has kept millions of people at home. for months without any progress,” commented Ipek Ozkardeskaya of Swissquote Bank.
On Sunday, a crowd of demonstrators expressed their anger in particular in Beijing, Shanghai and Wuhan. Although the total number of participants is difficult to verify, these rallies appear to be the largest since the pro-democracy riots of 1989.
This raises “fears that the unrest will lead to stricter repression by the Chinese authorities in response”, worries Michael Hewson, analyst at CMC Markets.
The protests are the culmination of a growing popular discontent in recent months in China, one of the last countries in the world to apply a strict “zero Covid” policy, which involves repeated confinements. and near-daily PCR testing of the population.
The deadly fire in Urumqi, capital of northwestern Xinjiang province, has sparked anger among many Chinese, with some blaming health restrictions for blocking relief work.
But the demonstrations this weekend have also brought out demands for more political freedoms, even for the departure of President Xi Jinping, who has just been reappointed for an unprecedented third term at the head of the country.
This wave of protests raises both fears of new, stricter anti-Covid measures to stem the protest and both hope for a relaxation of the zero-Covid policy.
“Reopening China will not be child’s play; it seems that the Chinese economy is likely to suffer more, either due to endless and unnecessary containment measures, or due to a serious health crisis” in the event reopening too quickly, warns Ipek Ozkardeskaya.
Apart from China, investors continue to watch for information concerning the monetary policies of central banks and especially that of the American Federal Reserve (Fed).
In this context, Friday’s US employment figures will be particularly scrutinized, as will Fed Chairman Jerome Powell’s speech on Wednesday. For Europe, the weekly agenda is centered on the publication of inflation figures.
TotalEnergies at the bottom of the CAC 40
The action of the French hydrocarbon giant TotalEnergies slid 2.05% to 57.24 euros, driven by oil prices which fell sharply on Monday. The benchmark American barrel, WTI, even fell to a level not seen since 2021.
Casino sells a piece of Assai
The Casino group announced on Monday the launch of the sale of part of its stake in the Brazilian Assai from which it hopes to draw around 500 million dollars in order to “accelerate its deleveraging”. Its action rose 6.82% to 11.91 euros.
© 2022 AFP
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