(CercleFinance.com) – The Paris Stock Exchange is expected to cash in a sharp decline Tuesday morning pending the reopening of Wall Street after the long weekend of Washington’s Birthday and in the wake of the Asian markets, which all lost ground overnight after Apple’s warning.
Around 8:15 am, the future contract on the CAC 40 index – February delivery – drops 42.5 points to 6043 points, announcing an opening in the red.
The Paris market had ended yesterday’s session at its daily highs (+ 0.3%) and had quietly settled above the threshold of 6085 points.
” The markets welcomed the accompanying measures taken by the People’s Bank of China and the Chinese government to mitigate the impact of the coronavirus on economic activity, but this optimistic atmosphere disappeared this morning after the bad news Apple’s warning about its first quarter revenue, ‘says Danske Bank.
In a statement, the Californian technology giant said it would not be able to reach its sales targets for the quarter ended in March due to the closure of its Chinese factories which penalize the production of iPhones
“Knowing that production in China is recovering more slowly than expected and its effects on the global supply chain are becoming evident, investors need to prepare for other bad news,” said Danske Bank.
The economic indicators that will appear today will allow market participants to get an idea of the impact of the epidemic on the world economy.
The publications of the ZEW index on investor sentiment in Germany and the Empire State index of the New York Fed will be particularly enlightening.
At Degroof Petercam Asset Management, however, it is recommended not to underestimate the efforts made by the government to prevent too significant a decline in Chinese stocks.
“We advise not to go against the Chinese government’s ability to support the markets,” said the asset manager.
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