Paris (AFP)

The Paris Bourse was exposed to profit-taking Friday mid-session (-0.76%) in a slightly nervous market before Donald Trump's comments on the internal security law that China wants to institute in Hong Kong.

At 1:17 p.m. (11:17 GMT), the CAC 40 index fell by 36.07 points to 4,735.32 points. The day before, it had ended up sharply (+ 1.76%).

The Parisian rating lost its optimism at the opening after four consecutive positive sessions.

Wall Street was preparing for its part to open lower. The futures contract for the Dow Jones Industrial Average index fell by 0.35%, that of the broad S&P 500 index by 0.23% and that of the highly technological Nasdaq by 0.19%.

For its part, the sovereign debt market increased its easing, taking advantage of risk aversion.

"The markets are hit by growing tensions between the United States and China," said David Madden, analyst for CMC Markets.

"As President Trump said on Thursday evening that he would hold a press conference on the subject, investors are now dodging actions for fear that it will further fuel tensions," he said.

Recently, Chinese pressure on Hong Kong, the treatment of the Uighur Muslim minority and China's handling of the Covid-19 crisis have angered Washington.

"Even if the simmering Sino-American tensions are not new to investors, the relationship between the two blocs has become the main source of uncertainty for the markets," writes Pierre Veyret, analyst at ActivTrades.

The United States threatens to abolish the commercial privileges of the former British colony as Beijing prepares to impose a national security law on Hong Kong, which in principle enjoys autonomy status.

Trump's press conference on Friday "has raised further concern among investors who fear that further escalation in tension between the two nations may jeopardize the first phase of the trade deal , as well as any future political or economic relationship, "said Mr. Veyret.

Secretary of State Mike Pompeo said the President should crack down on spying by Chinese students on this occasion.

In addition to Trump's conference, investors are awaiting a speech from the President of the Federal Reserve, Jerome Powell. They will also examine consumer confidence according to the University of Michigan (May) and the Chicago Area Manufacturing PMI (ISM).

In France, household consumption in France dropped by a third (33.7%) in April compared to that of February, before the health crisis. The fall in gross domestic product (GDP) was also revised to -5.3% in the first quarter (against -5.8% published in late April).

- Renault flashes red -

Largest drop in the CAC 40, Renault was down 6.16% to 20.55 euros after announcing the loss of about 15,000 jobs worldwide as part of a savings plan of 2 billion euros in three years.

Financial stocks were suffering from fears about Hong Kong, the leading financial center in Asia. Societe Generale fell 2.14% to 13.62 euros, like BNP Paribas (-2.49% to 32.96 euros) and Crédit Agricole (-0.75% to 7.94 euros).

Airbus, which saw its rating downgraded by a notch by S&P Global Ratings, lost 3.03% to 58.25 euros.

ADP yielded 1.11% to 93.55 euros despite the resumption of commercial passenger flights on June 26 at Paris-Orly airports, closed since March 31.

Ipsen dropped 0.07% to 72.10 euros after the announcement of the arrival on July 1 of Swiss David Loew, who came from Sanofi, as general manager to replace David Meek, who resigned in December.

The tourism sector was barely benefiting from the reopening in June of cafes, bars and restaurants, beaches, leisure parks and campsites. Accor lost 3.70% to 25.23 euros and Pierre & Vacances 4.66% to 18.40 euros.

© 2020 AFP