The Paris Bourse closes on a technical rebound (+ 0.56%)

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The Paris Bourse ended Friday on a technical rebound (+ 0.56%), allowing him to limit its correction in August while the environment remains uncertain due to the continuation of the trade war.

The CAC 40 index rose 30.51 points to end at 5,480.48 points, in a moderate trade volume of 3.35 billion euros. The day before, he ended up on a strong rise of 1.51%.

Over the past week, the index advanced 2.88% but over the month, it lost 0.56%. It's up 15.85% since January 1st.

The movement of the day corresponds to "a technical rebound linked to purchases to close the end of the month." Nothing justifies the increase "of 0.56% at closing, observed with AFP Marco Bruzzo, managing director at Mirabaud AM.

"What drives the market is the fact that the 10-year US borrowing rate is not moving too much so there is no relaxation or increased risk," he says, noting that the bond market is currently "a little trend".

In fact, "the environment remains very uncertain: since the beginning of the month, the three main increases are those of Pernod-Ricard, Essilor and Bouygues, so very defensive titles", illustrates the speaker. On the other hand, all cyclical stocks fell particularly sharply this month.

On the trade front, despite recent declarations of good will on the Chinese side and US, "nothing is resolved, it will take weeks or even months before having a clarification," says Mr. Bruzzo.

On Thursday, comments by the Chinese Ministry of Commerce that China did not intend to inflame the trade dispute with the United States had been very supportive of the markets.

On Friday, Donald Trump denied that tariffs imposed to force China to negotiate a trade deal posed a problem to the economy, but accused the central bank of being responsible for slowing the world's largest economy.

On the statistical side, in Germany, retail sales figures showed "no improvement" and inflation in the eurozone remained stable in August at an extremely low level (1%).

Annual inflation in the United States also remained in July far from the Fed's 2% target of 1.4%, according to the PCE index.

In addition, consumer confidence in the United States deteriorated sharply in August due to concerns over the trade war. This is the biggest degradation since December 2012, says the University of Michigan.

As for Italy, whose composition of a new government under the aegis of Giuseppe Conte is underway, after a recession in the second half of 2018 (0.1% GDP decline), it experienced zero growth in the first six months of 2019, confirmed Friday the Istat.

On the other side of the Channel, a Scottish court on Friday rejected a request to oppose the suspension of the British parliament, the first victory for the government in the legal battle launched by opponents of a hard Brexit who denounce a "coup d'etat".

Euronext CAC40



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