Paris (AFP)

The Paris Stock Exchange favored caution (-0.08%) Tuesday at midday before knowing the details of the Sino-American trade agreement signed on Wednesday and the first results of companies across the Atlantic.

At 1:18 p.m. (12:18 p.m. GMT) the CAC 40 index dropped 4.94 points to 6.031.20 points, in a trading volume of 1.2 billion euros. The day before, it had finished in equilibrium (-0.02%).

After a balanced start, the Parisian rating quickly turned red, to stabilize again at midday.

Wall Street was preparing for its part to open in dispersed order. The futures contract on the flagship Dow Jones Industrial Average gained 0.02% while the broad S&P 500 index lost 0.07% and the Nasdaq, with its strong technological coloring, crumbled by 0.13%.

"Caution prevails before the first American results. Today's session is a transition session on the markets, before the publication of Q4 2019 results and the signing of the + phase 1+ agreement between the states - United and China, "said Franklin Pichard, managing director of Kiplink Finance.

Before American publications, "European markets are stalling, while Wall Street is still prancing," also said Tangi Le Liboux, analyst for Aurel BGC, after Nasdaq and S&P 500 reached new highs on Monday.

"The content of the trade agreement, as well as that of the publications and the prospects of the companies will in particular allow investors to refine their feeling of market in the coming days," he added.

The text of the partial trade agreement between the United States and China will be made public in full Wednesday when the document is signed in Washington, according to White House economic adviser Larry Kudlow.

Another sign of appeasement just before this milestone, the United States no longer considers that China is manipulating its currency, and has removed this country from its black list, but maintains its surveillance.

The session will also see the American results season start with a whirlwind with heavyweights such as JPMorgan Chase, Delta Air Lines or Citigroup.

As for indicators, inflation figures for the United States in December are expected.

Before the opening of European markets, China released its trade balance for December, marked by the country's trade surplus with the United States, which fell 8.5% in 2019.

- Pernod Ricard at the head -

In terms of values, caution played in favor of defensive stocks, the least sensitive to the economic situation, and Pernod Ricard took the lead in the CAC 40 index with an increase of 2.12% to 166.25 euros.

Conversely, car manufacturers were retreating. Peugeot lost 0.19% to 20.65 euros and Renault 0.15% to 40.60 euros.

Regarding the latter, Nissan assured in a statement that it had "no intention at all to dissolve" its alliance with Renault and Mitsubishi Motors, in reaction to an article in the Financial Times which spoke of internal plans to this effect.

Vivendi fell 1.09% to 25.42 euros, ballasted by a lowering of its recommendation to "neutral" by HSBC. The media giant has also filed a new complaint in the Netherlands against the European holding project led by the Italian group Mediaset.

Danone suffered (-2.10% to 70.74 euros) from the lowering of its recommendation to "sell" by Société Générale.

TechnipFMC was also affected (-1.60% to 18.75 euros) by the lowering of its own by Bernstein.

Conversely, Vinci benefited (+ 0.76% to 100.50 euros) from its increase to "buy" by HSBC. Just like Imerys (+ 2.98% to 39.44 euros), raised to "buy" by Oddo BHF.

© 2020 AFP