The Paris Bourse ended the week on a decline of 0.30%, disappointed by indicators showing a slowdown in economic activity in France, even if the index rebounded during the afternoon.
The CAC 40 index dropped 14.91 points to 4,896.33 points. Over the week, the decline is clear (-1.34%), bringing the loss since January 1 to 18.10%. The volume of trade remained moderate at 2.6 billion euros, but it was still higher than on the other days of the week.
After an opening up, the Parisian rating was shaken by the publication of indicators showing a slowdown in private sector growth in August in France and in the euro zone. It lost almost 1.30%, but the index reduced its losses as the US markets opened up.
“There were many elements of awareness of the deteriorating economic situation during the week”, comments Lara Nguyen, expert in financial investments at Milleis Banque.
In France, growth in private sector activity slowed in August after its sharp acceleration in July, according to a provisional indicator released on Friday by the IHS Markit firm.
In the euro zone, private sector growth also slowed in August after a strong recovery in July, weakened by a rebound in the Covid-19 pandemic in various regions, according to the first estimate of the Markit cabinet.
“In other words, after the historic recession of spring, then the technical rebound of June-July, economic sluggishness is already back”, judge Marc Touati, president of the cabinet ACDEFI.
– Recovery plan –
The presentation of the recovery plan for the French economy, scheduled for the start of the week, will therefore be a “highlight” and particularly watched by investors, according to Ms. Nguyen.
The week was further marked by the worsening of the health situation in Europe, where the number of new contaminations started to rise again (+ 15% compared to the previous week), raising fears of measures to restrict the ‘economic activity.
France has thus registered 4,771 new cases of Covid-19 in the past 24 hours, an unprecedented increase since May.
However, the Parisian coast then recovered. “The market did not go below its lowest in August, nor the 4,800 points”, preserving itself “from a downward trend,” notes Ms. Nguyen.
In the third week of August, traditionally the hollowest, “each piece of information can have far greater implications than in normal times,” she continues.
In terms of values, the most cyclical and dependent on economic activity have suffered the most from the publication of activity indicators.
Peugeot fell 2.05% to 14.36 euros and Renault lost 0.69% to 23.04 euros.
Banks were also lagging behind, whether it was Societe Generale (-1.98% to 13.28 euros), BNP (-1.65% to 35.36 euros) or Crédit Agricole (-1.54% to 8.33 euros).
Technological stocks have resisted better, such as Dassault System which gained 1.13% to 152.40 euros, Capgemini (+ 1.51% to 114 euros), or even Atos which took 0.46% to 70.40 euros .
Rumors around a merger between the hotel group Accor and its British competitor Intercontinental have again carried the title, which jumped 4.18% to 24.67 euros.
Euronext CAC40
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