Thursday , October 28 2021

The Paris stock exchange is rolling under the weight of uncertainty – indices and actions


The CAC 40 lost 35.23 points to 5.033.62 points, with a trade volume of 3.8 billion euros. The day before he finished 0.65%.

After giving himself a rebound at the opening, the Paris Stock Exchange quickly disappointed and spent most of the meeting in red.

"We see a combination of elements that are still very negative, which means that the market is still not able to get out of this bearish spiral," said Daniel Rotorro, CEO of Diamant Bleu Gestion.

"We left this morning on an optimistic note with Theresa May's statement that she has a majority in her office," he added.

This optimist quickly turned around when cabinet ministers announced their resignation and called for a vote of no-confidence in the conservative government against the British prime minister. "

"The market is suffering the impact of this political crisis, a result which we do not see well," he added.

On Wednesday, the prime minister defended the project against the delegates, in connection with the resignation of four ministers, including Brexit Dominique Raab.

Following these resignations, the British pound fell sharply against the dollar and the euro. It lost more than 1.8% against the single European currency.

This political crisis in the UK "weakens the chances of a deal on the backdrop of + Brexit + Soft and increases the risks of UK exit from the EU without agreement, which is expected to displeases the market and tightens it," Mr Lertoro said.

Theresa May warned her delegates that if the text signed with Brussels was not given, it would be necessary to agree without the consent of the European Union, or even to give up Brest. She had to speak at a press conference on Thursday night.

The most exposed values ​​for this exit option without agreement, such as Getlink (formerly Eurotunnel), the automotive sector or the banking sector, have been particularly penalized.

On the other hand, the uncertainties surrounding the Italian budget, which the populist governing coalition in Rome refused to amend despite the European Commission's rejection, added to the general pressure on the stock exchange indices.

– Getlink on the front line against the British backwaters –

Last week, weekly claims for unemployment benefit were recorded in the US, while inventories of manufacturing and distribution companies rose in September.

On the other hand, growth in manufacturing activity in Philadelphia was slower in November. Prices of imported goods rose to their highest level in May since May, thanks to rising energy prices.

In terms of values, the automotive sector suffered from the political turmoil surrounding Brexit, but also decreased by 7.3% in the European car market in October, after falling by 23.5% in September.

Paz lost 5.24% to 19.79 euros, Renault to 0.70% to 65.23 euros, Wallo to 3.53% to 25.15 euros, to parity of 2.40% to 40.22 euros and Michelin to 0.60 to 89.70 euros.

Getlink (formerly Eurotel) fell 5.32% to 10.94 euros.

Bank shares suffered, following their Italian counterparts. BNP Paribas sold 1.19% to 45.50 euros, Crédit Agricole 1.38% to 10.99 euros and Societe Generale 0.72% to 33.24 euros.

Boeing fell 0.2% to 32.48 euros after rising net profit in the first nine months of the year.

ADP was 0.77% to 183.70 euros, supported by a 6% increase in traffic at Paris airports.

Chargeurs fell 6.29% to 17.57 euros, despite a 10.9% increase in sales in the third quarter.

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