The Paris Bourse closed slightly down Tuesday (-0.22%), mainly pending news from the US Central Bank and the US stimulus plan under negotiation.
The CAC 40 index fell 10.68 points to 4,928.94 points. The day before, it had finished in small decline of 0.34%.
“There is very little trend. The market especially awaits the result of the monetary policy of the US Federal Reserve on Wednesday evening”, and the press conference of its president Jerome Powell, comments for AFP Laurent Le Grin, manager at Degroofpetercam.
The American Central Bank began its monetary meeting on Tuesday in the midst of the resurgence of the Covid-19 pandemic which has forced a large part of the country to close its businesses and resume containment measures.
A victim of these new restrictions, US consumer confidence deteriorated in July, according to the Conference Board index, which also signals great uncertainty for the future.
In addition, investors are “awaiting news on the new US stimulus plan which can give a real boost to the economy and financial markets,” said Mr. Le Grin.
The Republicans presented a roughly $ 1,000 billion plan on Monday and are due to begin formal talks with the Democrats on Tuesday.
The plan includes a new check for households, additional loans for the small and medium-sized businesses most affected, and funds to allow schools to reopen.
The uncertainty around the Covid-19 and its financial implication remains a matter of major concern for investors who “want to believe in a vaccine prospect by the end of the year”, underlines Mr. Le Grin.
For now, Germany is alarmed by the increase in new infections in the country, of the order of 557 on average per day against less than 350 in mid-July.
The Covid-19 pandemic caused losses of 320 billion dollars for global tourism from January to May over one year, according to the barometer published Tuesday by the World Tourism Organization (UNWTO).
The second largest tourist destination in the world, Spain is bearing the brunt of an outbreak of new cases which has led France, Germany and the United Kingdom to advise against travel to certain regions or to re-establish a quarantine.
– The well-animated coast –
The Parisian quotation was driven mainly by the results of LVMH and Peugeot.
Peugeot has positively surprised (+ 2.42% to 15.27 euros) by remaining profitable in the first half, a publication higher than forecasts.
Conversely LVMH was penalized (-4.07% to 385.05 euros) by the heavy fall in its activity in the first half of the year due to the pandemic, leading to Kering (-2.73% to 483.20 euros) and Hermès (-2.19% to 731.20 euros) in its wake.
Airbus (+ 3.12% to 63.85 euros) and Safran (+ 3.91% to 90.36 euros) reacted very positively to the aeronautical investment fund endowed with 630 million euros to support the sector weakened by the coronavirus crisis.
Air transport has sagged over the prospect that global traffic will not return to pre-crisis levels until 2024, according to the International Air Transport Association (Iata). Air France-KLM fell 0.77% to 3.76 euros and ADP 2.14% to 89.05 euros.
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