Paris (AFP)

The Paris Stock Exchange ended sharply down (-1.18%) Tuesday, looking forward to and very apprehensive the resumption of Sino-US trade talks, as tensions resurfaced.

The CAC 40 index fell by 64.99 points to 5,456.62 points in a trade volume low of 2.97 billion euros. The day before, it ended up 0.61%.

The Parisian coast opened slightly in the green before tilting and increasing its losses gradually.

"The impatience of the operators on the commercial war justifies the movement" on the market, where "the cyclical stocks are attacked", observes Frédéric Rozier, portfolio manager at Mirabaud France.

Investors are in a state of "worry about the economic cycle, the Sino-US talks, Brexit and the uncertain season of results" that is approaching and the market expects "corporate speeches a little more cautious" he continued.

"The lack of visibility on the economic cycle and possibly its fragility lead to caution, out of hyper-cyclical values," noted the specialist.

Main appointment of the week, the next negotiations between the United States and China to try to break the stalemate of the trade war will be held from Thursday in Washington.

"But Deputy Prime Minister Liu He will not wear the title of + Special Envoy +, which suggests that he does not have clear instructions from Beijing.There is a feeling that the trade talks are over before to have started, "notes David Madden, analyst for CMC Markets.

While media reports suggest that Chinese authorities have significantly reduced the scope of litigation they are prepared to tackle this time, Donald Trump announced Monday that he favors a global trade deal with Beijing rather than a partial treaty. .

Trade offensives all over the world by Donald Trump will cost about 700 billion dollars to global growth by 2020, the equivalent of the economy of Switzerland, warned Tuesday Kristalina Georgieva, the new director general of the IMF.

Another black spot that is putting pressure on the market, talks between Europeans and British seemed on the verge of rupture on Tuesday just over three weeks of the expected date of Brexit.

The President of the European Council, the Polish Donald Tusk, on Tuesday accused British Prime Minister Boris Johnson of playing with "the future of Europe" while German Chancellor Angela Merkel judged an agreement "extremely unlikely" without compromise of the part of London.

An exit from the European Union without a net, a worst-case scenario for the business community, is not ruled out by the British government as the planned date of 31 October is fast approaching and no compromise has yet been reached. been validated.

© 2019 AFP