Paris (AFP)
The Paris Bourse recorded modest losses at midday on Friday (-0.35%), investors worried about the economic impact of the health crisis linked to the new coronavirus and digesting the strong decline in German production in awaiting US employment figures.
At 1.30 p.m. (12.30 p.m. GMT), the CAC 40 index dropped 21.2 points to 6.016.94 points, in a trading volume of 1.3 billion euros. The day before, it had finished in the green (+ 0.88%) posting four consecutive sessions of increase.
The Parisian coast opened slightly down before losing more.
Wall Street was also moving towards an opening in the red. The futures contract on the flagship Dow Jones Industrial Average yielded 0.31%, that of the broad S&P 500 index 0.26% and that of the Nasdaq, with a strong technological coloring, 0.28%.
"First of all, investors are digesting the bad data for German industrial production for December, which were far below expectations this morning," observes Pierre Veyret, analyst at ActivTrades.
In addition to "growing concerns over the coronavirus" which is blocking hundreds of tourists on three ocean liners in Asia, "some investors may be tempted to take some of yesterday's profits before the US employment report d 'today, where a significant increase is already integrated in prices,' he concludes.
After falling German industrial orders released on Thursday, industrial production in the largest economy in the eurozone also fell 3.5% in December compared with November, as analysts expected a slight decline at 0.20%.
"The economic data remind us that the recent improvement is fragile," notes Stéphane Déo, strategist at Banque Postale Asset Management.
Great uncertainty continued to reign over the economic impact of the coronavirus which killed 636 people and contaminated nearly 32,000 others in China, according to a latest official report.
The Chinese economy could be permanently weighed down, because in many provinces, most companies and factories will not resume their activities before February 10 at best.
- The routed automobile -
"An extension of the containment measures in China is sure to have, despite the announced support plans, a significant impact on the results of companies, including outside China, given the level of integration of production chains and logistics, "says Gilles Guibout, responsible for European actions at AXA IM.
The World Health Organization said on Friday a shortage of masks and other protective equipment against the new coronavirus.
The Chinese regime announced the opening of an investigation after the death Friday of the Chinese doctor who had been punished for sounding the alarm at the appearance of the new coronavirus.
The death of this Wuhan ophthalmologist was followed by an avalanche of criticism on social networks against local officials who seemed to seek more to cover up the case than to stem the epidemic.
Auto stocks were shattered by this epidemic that threatens the supply chain as well as hopes of recovery for the sector. Peugeot lost 3.02% to 19.28 euros and Renault 2.87% to 35.06 euros.
On the other hand, L'Oréal rose by 0.60% to 269.40 euros thanks to the strongest annual growth in its turnover in ten years.
The oil sector was enduring the recent drop in prices that the OPEC technical committee and its Russian partner, seek to curb, meeting since Tuesday in Vienna: TechnipFMC fell by 3.90% to 15.52 euros and Total 1.42% at 45.26 euros.
EssilorLuxottica lost 1.09% to 135.75 euros. The European Commission has announced the opening of an in-depth investigation into its plan to acquire the Dutch optical distributor GrandVision for 7.1 billion euros, fearing a reduction in competition.
Engie dropped 0.80% to 15.59 euros. The energy giant's board of directors has spoken out against the renewal of the mandate of general manager Isabelle Kocher.
Natixis gained 3.58% to 4.23 euros, driven by an increase of around 20% in its net profit in 2019, benefiting from a significant exceptional effect linked to the sale to its parent company of its specialized financial services division .
© 2020 AFP