The Paris Bourse closed slightly up 0.28% on Tuesday, showing a wait-and-see attitude to the negotiations underway in the United States between Republicans and Democrats on a new stimulus plan to fight against the consequences of Covid-19.
The CAC 40 index advanced 13.59 points to finish at 4,889.52 points. On Monday, it ended up sharply up 1.93% after a difficult week.
“There was no real catalyst today,” remarks Philippe Cohen, manager at Kiplink, apart from the favorable American statistics for orders to industry, which allowed European markets to rise slightly and on Wall Street to move forward a bit.
“The markets are waiting to see what will happen in the US Congress, and whether or not the plan will pass and help the unemployed with the famous check for 600 dollars,” said Philippe Cohen.
– “Announcement of the week” –
American Republicans and Democrats continued their discussions on Tuesday to find an agreement on new aid for the millions of Americans unemployed because of the Covid-19, but also for struggling businesses and local communities.
At the heart of the disagreements between the two parties: this unemployment benefit of 600 dollars per week, paid by the federal government in addition to the traditional allowance distributed by each of the 50 states. The Republicans want to significantly reduce the amount, unlike the Democrats.
At the end of the day on Monday, President Donald Trump said he was considering acting without waiting for Congress, by executive order, to prevent tenant evictions and reduce payroll costs.
Market players have been monitoring the aftermath of the “Tiktok affair”, named after the very popular video-sharing application owned by Chinese ByteDance, accused by Washington of being able to be employed by the Beijing intelligence services.
The application will have to close in the United States on September 15 unless Microsoft acquires it, said Donald Trump on Monday, adding that national funds “will have to receive a substantial percentage of the price” of the sale.
“It is outright intimidation,” the spokesperson for the Chinese Foreign Ministry reacted on Tuesday.
“Other subjects will return to the table with China until November” because of the proximity of the US presidential election, believes Philippe Cohen.
“Market players are on their guard as to the possibility that Beijing will give back (to Washington) in one form or another,” said David Madden, analyst for CMC Markets.
Among the values of the day, Renault had the best performance of the CAC 40 with an increase of 6.79% to 22.42 euros, allowing it to rebound after a low during several sessions following the publication of its results at the end of July. Peugeot for its part took 3.41% to 14.41 euros.
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