The Paris Bourse reduces its losses as it nears closing (Photo credits: Adobe Stock -)
(CercleFinance.com) – The Paris Bourse reduces its losses (-0.7%) while Wall Street resists much better than expected and preserves almost balance while the trend appeared very negative in pre-opening (in the wake of the decline from last night with -0.4 to -0.5%).
The Euro-Stoxx50 yields -0.7%, like the DAX30 and the CAC40 … and the London Stock Exchange grapple + 0.1% after the constitutional coup de force Boris Johnson (which plunges the book ).
But the Chinese denial of the resumption of trade talks evoked by Donald Trump has only lost a fraction of the gains of the sittings of Monday and Tuesday (garnered for an excuse that we now know fallacious).
Thus, the CAC 40 clings to the 5,350 points … level not far from that observed 3 weeks ago (August 8 at the opening): a lot of bad news in the meantime (escalating tensions Sino-US, Trump J.Powell, G7 of Biarritz overwhelmed and tensions with Brazil, 'macro' figures disappointing, inversion of the curve of the rates aggravated), but perfectly unchanged stock indexes (after a start of August 'complicated').
Resilience that questions …
'Knowing that the important meetings of the Fed and the ECB are only in a few weeks', the markets seem to expect a lot of their future announcements' this morning considers Alexandre Baradez, market analysis manager at IG France.
The Brexit issue is also a major source of uncertainty for the financial community, while there are still two months left before the UK's theoretical exit from the EU.
Boris Johnson has just bypassed the work of the British Parliament by extending his 'leave' until October 14 (2 weeks before the implementation of the plan of exit in 'no deal' of Boris Johnson (supported by the Brexiters 'Nigel Farage but fought by all other formations and even within the' conservatives').
The EU demands the signing of an exit agreement including a protocol on Ireland, before negotiating a free trade treaty with the UK. The British PM, Boris Johnson, says he is ready to leave without agreement if this protocol is not removed, "says Oddo.
'We continue to expect the difficulties to rise for equity markets (…) by the end of the year as investors adjust their positions to the prospect of a long war and the growing weakness of the global economy, 'say analysts at Capital Economics.
Brexit, trade wars and current geopolitical tensions could actually result in an unstable second half, confirm the strategists of Natixis Investment Managers.
'Despite a globally positive first half of 2019, global investors will have to contend with poor performance over the next six to twelve months,' warns the asset manager, citing a survey of his strategists and economists.
The agenda is light in terms of economic indicators on Wednesday, the only publication of the day being the oil stocks in the United States, scheduled after 16H this afternoon.
On the foreign exchange side, the euro is holding steady at 1.11 dollars, stable … but Sterling pounders by -0.9% against any currency.
Brent rallies + 1.2% to $ 60.7 in London.
In the news of the values in Paris, AXA and Thales are closing with -3%.
It should be noted that Eiffage announces that it has won, in consortium with DEME, the contract for the design, manufacture and installation of the 80 steel monopial foundations of the Saint-Nazaire offshore wind farm, for an overall amount of over 500 million euros.