Paris (AFP)
The Paris Stock Exchange stabilized at equilibrium Wednesday at midday (+ 0.09%), investors being absorbed both by the spread of the coronavirus from China and by publication of results.
At 13.34 (12.34 GMT) the CAC 40 index advanced from 5.50 points to 6.047.50 points in a trading volume of around 900 million euros. The day before, it had finished down 0.54%.
The Parisian rating started on a slight rebound before camping at breakeven.
Wall Street was preparing for its part to open in the green. The futures contract on the flagship Dow Jones Industrial Average gained 0.28%, that of the broad S&P 500 index 0.42% and that of the Nasdaq, with a strong technological coloring 0.71%.
"Investors are taking advantage of yesterday's falling prices to make cheap purchases, reassured by the reaction of the Chinese authorities as the epidemic hits during the New Year," observes Franklin Pichard, chief executive officer of Kiplink Finance.
The toll of the new coronavirus was further increased on Wednesday in China. Authorities have reported nine deaths and warned that the virus could "mutate" and spread more easily. They also announced preventive measures.
An ad hoc committee of the World Health Organization (WHO) met Wednesday in Geneva to determine whether to declare a "public health emergency of international concern".
Investors remember that during the episode of SARS (severe acute respiratory syndrome) in 2002-2003, it was Asian countries that were the most affected and that the impact was marginal in the United States and Europe.
However, especially in China, "the structures of the economy have changed in more than 15 years. The weight of services and consumption is now higher. As such, and all other things being equal, the impact given amplitude of the epidemic, could be stronger ", underlines in a note, Hervé Goulletquer of LBPAM.
The tone in trade policy was not a joke either.
The United States plans to impose punitive customs duties of 25% on the automotive sector, in the event of "arbitrary" taxation in Europe on digital businesses, Treasury Secretary Steven Mnuchin said in Davos Wednesday, repeating previous reports threats from Washington.
The day before, the threat against the automotive sector however seemed to be diminishing, Donald Trump having indicated that discussions were going to be started with a view to signing a "trade agreement" with the European Union.
Vigilance will also be required as the pace of publication of corporate results accelerates and as many economic indicators will punctuate the next sessions.
Real estate figures in the United States are expected in the afternoon.
- Soitec disappoints, Amundi praised -
Airbus rose 1.92% to 137.40 euros, Sudan has announced that the European aircraft manufacturer was in talks to sell eight new aircraft to its national airline.
Amundi climbed 2.87% to 73.55 euros, boosted by the announcement of the buyout with a view to 100% of the capital of the subsidiary of the bank Banco Sabadell specializing in asset management in Spain, for an amount of 430 millions of euros.
Alstom gained 2.19% to 46.19 euros. According to the Bloomberg agency, citing people close to the file, the group has held preliminary discussions with the Canadian group Bombardier in recent months with a view to a possible merger of their railway activities.
Soitec fell 11.40% to 85.10 euros. The group confirms that it expects sales growth of around 30% over the full year, at constant scope and exchange rates. But it disappoints on its oganic growth rate of the third quarter.
Elior fell by 1.91% to 12.86 euros, penalized by the decline in its turnover of 0.7% in the first quarter of its financial year 2019/2020.
Vranken Pommery Monopole sold 0.75% to 19.80 euros, the group predicting a decline in its annual results.
Sanofi suffered (-1.21% to 90.25 euros) from a drop in recommendation to "maintain" against "buy" by Liberum.
ADP took advantage on the other hand (+ 1.38% to 176.50 euros) of a start of monitoring on the title by Deutsche Bank on a recommendation to "buy".
© 2020 AFP