Paris (AFP)

The Paris Bourse looked gray on Thursday at mid-session (-0.78%), depressed just like its European counterparts by the announcements of the American Central Bank (Fed) the day before deemed insufficiently accommodating.

The Paris index lost 39.36 points to 5,035.06 points around 1:00 p.m. (11:00 GMT).

Elsewhere in Europe, London dropped 0.79% and Frankfurt 0.68%.

Futures contracts on Wall Street pointed to an opening down around 1% on the three major indices.

"There weren't enough ingredients in the Fed's magic potion to wipe out the September spleen," said Stephen Innes, chief market strategist for AxiCorp, referring to the plunge in indices earlier this month.

The US economy should fare a little better than expected in 2020, but the return to the flourishing situation at the start of the year is still a long way off, the president of the institution Jerome Powell anticipated on the occasion of the last meeting before the US presidential election.

As a result, rates should remain at least until 2023 in a range between 0 and 0.25%, at the floor level where the institution had put them in emergency in March when the virus was wreaking havoc.

Despite the institution's still very accommodating tone on rates, many observers felt that was not enough.

"With the impression of a less accommodating Fed, seen through the absence of new budgetary measures from a Congress to absent subscribers, the depression may continue," adds Mr. Innes.

"Not easy to adjust communication to prevent all market risks," reacts Véronique Riches-Flores, economist and president of Riches Flores Research, with reference to the Fed boss's "balancing act" on Thursday.

Having also become very accommodating thanks to the crisis, the European Central Bank announced on Thursday a further easing of the capital requirements of the big banks.

BANKING BECOMES AFTER THE FED AND THE ECB

Concerns about the economic situation and the prospect of very low rates were pushing bank stocks down.

Crédit Agricole losing 1.11% to 8.35 euros and BNP Paribas 1.09% to 35.32 euros.

Elsewhere in Europe, HSBC dropped 2.10% to 70.35 pence and Barclays 1.96% to 100.94 pence.

BORSA ITALIA, SUBJECT OF CONFLICTS

The Swiss stock exchange has submitted a non-binding offer in the race to buy Borsa Italiana, a spokesperson for SIX Group, the market operator in Switzerland, told AFP on Thursday.

Also in line to buy it back on the London Stock Exchange (-0.96% to 8,888 pence), Euronext (-0.71% to 991.79 euros) and Deutsche Borse (-0.37% to 147.80 euros) .

RENAULT AND PEUGEOT SCREW FOR CAR SALES

The Renault group (with Dacia, Lada and Alpine) suffered a 24.7% drop in registrations in August 2020 compared to August 2019, announced the Association of European Automobile Manufacturers (ACEA).

The title fell 0.93% to 23.41 euros.

PSA (Peugeot, Citroën, Opel / Vauxhall, DS) recorded a drop of 20.8%, its title lost 1.43% to 16.15 euros.

© 2020 AFP