Paris (AFP)

The Paris Bourse ended sharply down Tuesday (-1.41%), returning to below 5,600 points, weighted by a highly negative manufacturing indicator in the United States, another sign of the current economic slowdown.

The CAC 40 index fell by 80.16 points to 5,597.63 points, in a moderate trade volume of 3.2 billion euros. The day before, it ended up 0.66%.

The Paris rating started slightly higher, registering shortly after the opening a new annual record at 5,704.93 points. Then it turned red after inflation in the euro zone, sinking further immediately after the ISM index in the United States.

"The market has had an epidermic reaction to this very bad indicator", very followed by investors and confirms the contraction of the manufacturing sector in the United States, says AFP Andrea Tuéni, analyst at Saxo Bank .

"This activity fell again in September to its lowest level in 10 years, mainly due to the uncertainties surrounding trade, according to the ISM index.

Analysts were hoping for a slight rise in the indicator in positive territory just above 50 points but it fell to 47.8 points.

This contraction confirms a trend that "fundamentals are slowing somewhat globally" in the context of a Sino-US trade war that has lasted for more than 18 months, says Tuéni.

"We entered a classic scenario of risk aversion" reflected in particular by a falling dollar and the rising price of gold, he continued, saying that this movement "can be offset against a background of commercial war ", the main compass of the stock market, which remains on the lookout for any echo on the subject.

In any case, we must expect "more pressure on the US Federal Reserve," according to the analyst.

US President Donald Trump has reacted immediately on Twitter, accusing the Fed of being responsible for the rise of the dollar, and therefore the weakness of the manufacturing sector, dear to its economic policy and its electorate.

In the eurozone, investors had little better to exploit: inflation reached its lowest level in three years in September, at 0.9%. This figure is lower than the expectations of analysts surveyed by the financial information provider Factset, who expected 1.0%. It remains well below the target of the European Central Bank (ECB), which aims to maintain a level of inflation slightly below 2%.

As for the Brexit, an exit from the United Kingdom of the European Union without agreement on October 31 is the "most plausible" scenario, said Tuesday the French Minister of Foreign Affairs Jean-Yves Le Drian.

British Prime Minister Boris Johnson on Tuesday promised new proposals in Brussels.

© 2019 AFP