Paris (AFP)

The Paris Bourse reached equilibrium in mid-session Monday (+ 0.02%), pending the resumption of negotiations at the European summit in Brussels to agree on a plan to support the economy.

At 2:06 p.m. (12:06 p.m. GMT), the CAC 40 index gained 1.05 points to 5,070.47 points. On Friday, it finished down 0.31%.

The Parisian rating opened lower, until losing 1%, before going up in the green, and stabilizing around the equilibrium.

"Prices are mixed due to the absence of an agreement on the economic support plan" for the countries of the European Union, even if "the gap between the two camps has narrowed", according to David Madden, CMC Markets analyst.

Negotiations at the European summit in Brussels, initially scheduled for only Friday and Saturday, must resume at 4 p.m., the 27 heads of state and government have so far found no agreement on a common recovery plan.

The President of the European Council, Charles Michel, mediator of the summit, must present a new compromise project.

The amount of aid granted in the form of subsidies continues to cause discord, the so-called "frugal" countries (Netherlands, Sweden, Denmark, Austria) and Finland, wishing to reduce it below the 500 billion euros foreseen in the first proposition.

The summit "will have profound consequences," according to Christopher Dembik, head of economic research at Saxo Bank. "We are concerned that Mr. Michel's ambitious proposal will be watered down considerably, which would mean that the EU is once again missing the opportunity to show real solidarity and move towards the completion of monetary union ", he notes.

-Volatility-

With the resumption of negotiations, "the volatility of the market should increase. Indeed, most investors are patiently following the discussions," notes Pierre Veyret, technical analyst at ActivTrades.

A success in the negotiations opens "the possibility of new heights later in the week" for the European markets.

Conversely, "additional downward pressure could also be felt, as cases of coronavirus continue to increase and the probability of new confinements in many areas remains worrying," said Mr. Veyret.

The resurgence of new cases of Covid-19 in recent weeks in the United States, the most affected country, represents "the main risk" for the American economy, estimated Friday the International Monetary Fund. It has already resulted in "a slowdown" in some states of the country and a "partial cancellation" of reopening decisions, enough to derail the recovery started in May, according to the institution.

Volatility is reinforced this week by the many expected corporate results.

In terms of values, Teleperformance rose 2.12% to 236.50 euros following a recommendation to "overweight" analysts at Morgan Stanley.

EssilorLuxottica sold 0.93% to 116.95 euros after claiming on Saturday that it had seized a Rotterdam court to demand information on the impact of the coronavirus crisis from the Dutch optical distributor GrandVision, which it wants to buy .

Arkema progressed slightly (+ 0.31% 89.68 euros), the day of the announcement of the acquisition by the fourth quarter of 2020 of Fixatti, a specialist in fusible adhesive powders present in Europe and China.

French automaker Renault gained 1.74% to 24.28 euros, despite the publication of its global sales, down 34.9% in the first half.

© 2020 AFP