The Paris Stock Exchange increases its losses, fearing a return of strong commercial tensions (-2.34%)


The Paris stock exchange fell on Thursday mid-day (-2.34%), fearing a deterioration in Sino-US trade relations after the arrest of a senior China official Huawei.

At 1.50pm (1250 GMT), the CAC 40 lost 115.87 points to 4.828.50 points, the lowest level since February 2017, with a trade volume of 1.7 billion euros. The day before had ended a sharp drop of 1.36%.

After the opening markedly lower, the Parisian coast stopped and sank in red.

For his part, Wall Street was preparing to open also in negative. Futures on the indices of the Dow Jones Industrial Average index lost 1.53%, the broader S & P 1.49% index and the technology-dominated Nasdaq index. ; 1.99%.

"The arrest of Huawei Meng Wanzhou chief financial officer this weekend in Canada has shaken investor confidence," said David Madden, CMC Markets analyst.

Meng Wanzhou, chief financial officer of the Chinese telecommunications giant, was arrested on 1 December in Vancouver, the United States is seeking his extradition and the bail hearing is scheduled for Friday, according to the Canadian Department of Justice .

According to press reports, Washington suspects that Ms. Meng violated US sanctions against Iran.

"Relations between the United States and China were improving after the G20, now the arrest could stop the process," Madden said.

The first two world powers concluded a 90-day truce in their customs war after the summit in an attempt to renegotiate their trade relations.

"The tension between the United States and China has increased a lot," said Franklin Pichard, CEO of Kiplink Finance.

On the European side, the political context has remained complex.

"Theresa May provokes a heated debate in Parliament on the agreement with the European Union, where she is far from winning, and in Italy the Italian government will send the revised version of the budget to the EU within the week then , "Mr. Pichard detailed.

"In short, the conditions for a true movement of relief are not yet met … Far from it," he said.

– The whole ACC in red –

As for the indicators, orders placed with German industry increased by one month in October.

The rest of the agenda is essentially American, with industrial orders for October, job creation in the private sector (ADP survey) for November, and final productivity estimates for the third quarter.

Investors will also be aware of weekly claims for unemployment benefits and a report on oil reserves in the United States.

In terms of values, the technology sector, weakened by fears of new Sino-American tensions, was at the bottom of the rankings. STMicroelectronics fell 4.89% to 12.25 euros and Soitec from 5.62% to 49.08 euros.

Also Capgemini was penalized (-7.39% to 95.62 euros) by a downgrade of its recommendation by Barclays.

Also the automotive sector suffered, like Peugeot (-2.81% to 18.14 euros), Renault (-3.02% to 58.24 euros), Michelin (-3.05% to 87.58 euros) and Valeo (-3.17% to 25.00 euros).

Sanofi fell 1.64% to € 76.77, after announcing 670 job cuts in its support functions in France by the end of 2020, on a voluntary basis, as part of a new plan to global transformation.

Latécoère has fallen from 20.09% to 2.55 euros, penalized by a weakened forecast of its profitability for 2019. However, the equipment manufacturer has revised its sales forecasts upwards.

Recylex fell 2.78% to 5.95 euros, influenced by the announcement of further discussions with its creditors on the terms of its financing, due to the disappointing performance of one of its sites in Germany.

Genfit rose 6.63% to € 21.54, supported by the positive results of a Phase II study that assessed the efficacy and safety of its flagship drug, the elafibranor, for treatment of chronic and rare liver diseases.

bioMérieux is down (-5.88% to € 60.80) due to a decline in its recommendation by Kepler Cheuvreux.


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