The Paris Stock Exchange is expected to weaken Friday at the opening in the wake of the Asian stock exchanges and the closing of Wall Street pending a press conference by the American president on China.
The futures contract on the CAC 40 yielded 0.68% forty minutes before the opening of the session. The day before, the Parisian rating had finished for the fourth session in the green (+ 1.76%) at 4,771.39 points.
“European indices should open lower this morning in the wake of the US closing,” suffering the impact of “threats from President Trump against social networks and China,” anticipates John Plassard, specialist in investment at Mirabaud.
“European markets are expected to open lower in the wake of American markets, after finishing in the green for the fifth time in a row,” also writes analyst Michael Hewson for CMC Markets.
“The arrival of the weekend and the month should play a role in stock prices, especially since over the past two months the European markets have managed to cancel half of March’s losses while the American markets have totally erased, “he adds.
In recent times, investors have watched with apprehension at the deterioration of relations between the two leading world powers.
Donald Trump accuses China of being responsible for the spread of the new coronavirus across the planet, and has promised retaliation.
Thursday, he announced before the closing of the American markets that he would give a press conference concerning China.
State Secretary Mike Pompeo said he should crack down on spying by Chinese students.
“Investors are wondering if the US president is about to announce sanctions against Beijing and / or new customs taxes,” said Plassard.
This week, the tone turned sour again between Washington and Beijing.
The US administration revoked Hong Kong’s preferential trade status on Wednesday. A decision that was not enough to prevent the Chinese parliament from adopting the controversial national security provision in Hong Kong in reaction to protests last year.
In addition, Donald Trump targeted the technology sector on Thursday by announcing a decree aimed at limiting the protection of social networks and their room for maneuver in moderating their content.
In addition to Donald Trump’s conference, investors will have several up-to-date economic data to consider from Germany, France and Italy as well as a speech by Federal Reserve Chairman Jerome Powell.
They will look at consumer confidence according to the University of Michigan (May) as well as growth in the first quarter in Brazil.
Industrial production in Japan, hit hard by the global coronavirus crisis, plunged 9.1% in April over a month, a record since 2011.
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Renault: the manufacturer plans to cut around 15,000 jobs worldwide, including 4,600 in France, as part of a savings plan of 2 billion euros over three years.
The tourism sector should benefit from the reopening in June of cafes, bars and restaurants, beaches, leisure parks and campsites.
Ipsen: the pharmaceutical group announced the arrival on July 1 of the Swiss David Loew, who came from Sanofi, as managing director replacing David Meek, who resigned in December.
The sea bathing company (SBM), which manages the main hotels and casinos in Monaco, has warned that the results will be “very bad” for 2020-21.
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