Paris (AFP)

The Paris Bourse fell 2.08% Wednesday, losing ground against a resurgence of fears of global growth that has swept the optimism generated the day before by a calming trade dispute between China and the United States.

The CAC 40 index lost 111.77 points to 5.251.30 points, in a moderate trade volume of 3.86 billion euros. The day before, he had finished up 0.99%.

"The market has no support and is subject to a deterioration of the global economic context," said AFP Frédéric Rozier, portfolio manager at Mirabaud France, adding that no information was "likely to comfort him" ".

Investors began in the morning to take notice of "dismal economic data" in China and Germany, which show that "the economic slowdown is there and is spreading in many areas today," he said. .

"We have slowing growth, major geopolitical uncertainties, and no information on companies to put themselves in the tooth," he said.

China's industrial output slowed sharply last month, with its growth rate falling to 4.8% year-on-year, its lowest increase in 17 years.

This raises serious concerns about the state of the world's second largest economy, facing a commercial and technological battle with the United States whose investors hope that it will end with an agreement this year.

In Germany, Gross Domestic Product was down 0.1% from the previous three months. "If this figure is confirmed and the third quarter is also bearish, Germany will be in a technical recession," warned for Tangi Le Liboux, a strategist of the broker Aurel BGC.

This figure is a chill after the rebound of 0.4% of German GDP in the first quarter, while Germany had escaped a hair recession during the second half of 2018.

Then, in the late morning, investors' fears of global growth strengthened as the interest rate on 10-year US Treasuries temporarily passed on Wednesday under the two-year coupon rate.

This phenomenon, known as the "reversal of the yield curve", reflects the yield difference granted by the US government to investors who are betting on its short-term or long-term debt.

This movement "confirms a phase of slowdown in global growth" and "increases the probability of recession but not systematically in the very short term," told AFP Cyriaque Dailland, a diversified manager at Sanso IS.

The market thus erases its rebound of the previous day, caused by a respite in the commercial tensions between Beijing and Washington.

Donald Trump has released the pressure Tuesday by delaying the imposition of punitive tariffs on a series of Chinese consumer goods.

The US president has also threatened to leave the World Trade Organization (WTO), which he criticizes sharply because it would give, according to him, preferential treatment to China to the detriment of the United States.

© 2019 AFP