Paris (AFP)
The Paris Bourse ended down 0.64% on Monday, worried about the Brexit negotiations that are getting bogged down, as the deadline approaches to reach an agreement between the United Kingdom and the European Union.
The CAC 40 index dropped 35.77 points to 5,573.38 points.
On Friday, it had risen 0.62%, to conclude a fifth consecutive week of increase.
"Discussions around Brexit are orienting the markets," notes Valentin Bulle, manager at Dôm Finance.
Despite numerous meetings, the United Kingdom and the European Union cannot agree to fix their next relations, especially trade.
British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke at 5:00 p.m. (4:00 p.m. GMT) Monday on the phone to take stock.
Earlier today, the British government ruled out resuming negotiations next year in the event of failure to find a compromise by the end of the year.
"Investors are in the dark on this subject, and this therefore leads to profit taking," Mr. Bulle analyzes.
The nervousness extended beyond the framework of the equity markets, as the pound gave up a lot of ground on Monday against the main world currencies.
"In the longer term, investors are also waiting for the stimulus plan in the United States. For now, the prospect of its implementation prevents big drops in the market, which are still evolving at a high level", continues the manager .
Bank stocks, which have risen sharply since the news around Covid-19 vaccines, were the main losers in Brexit-related profit-taking, according to Mr. Bulle.
The Societe Generale group, which will also merge its networks of banks Societe Generale and Crédit du Nord, fell 2.73% to 17.79 euros.
BNP Paribas lost 2.70% to 44.51 euros and Crédit Agricole 2.90% to 10.73 euros.
In this uncertain context, investors have instead turned to defensive stocks or less subject to economic vagaries.
STMicroelectronics gained 1.03% to 34.41 euros, Hermès rose 0.65% to 831.80 euros and Air Liquide took 1.19% to 136.20 euros.
© 2020 AFP