2023-08-15 17:06:16
The main CAC 40 index dropped 81.14 points to 7,267.70 points. On Monday, it had started the week with a very small increase of 0.12%.
It should be noted, however, that the absence of many investors due to the summer holidays and the Assumption holiday can amplify the variations.
Trading volume during the session remained low, amounting to less than two billion euros.
“The central theme of the session was the macroeconomics in China and all the concerns it generates,” said Lucas Excoffier, head of continental brokerage at Oddo BHF.
Retail sales, the main indicator of household consumption, rose only 2.5% year on year in July, according to official figures from the National Bureau of Statistics (BNS), while analysts polled by the Bloomberg agency expected an acceleration (3.6%).
In addition, to support activity, the Chinese central bank on Tuesday lowered a benchmark rate for medium-term loans and injected 400 billion yuan (50.4 billion euros) into the economy.
However, “in an environment of already low expectations, the data came in below expectation, and the modest interest rate cut did nothing to ease concerns about the outlook for China’s economy, and therefore the global economy,” said CMC Markets analyst Michael Hewson.
“We can add to all this the difficulties of Country Garden”, one of the largest real estate groups in China, whose collapse would have catastrophic repercussions on the financial system and the Chinese economy, continues Lucas Excoffier.
In this context, “the sectors of raw materials, energy and finance all fell back”, underlines Michael Hewson.
The “tech” unscrews
Shares of technology companies, often seen as riskier, have fallen amid investor fears and rising interest rates.
Teleperformance, the biggest drop in the Paris stock market index on Tuesday, dropped 2.37% to 117.50 euros. Worldline lost 1.48% to 31.93 euros and Capgemini 1.17% to 161.00 euros.
The interest rate of the French ten-year debt was displayed at 3.23%, against 3.17% at the close of the previous day.
Real estate loses ground
Unibail-Rodamco-Westfield lost 1.98%, Icade 3.21% and Gecina fell 1.24%.
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