The Paris Stock Exchange ended down 0.42% on Tuesday on concerns over a deterioration in US-China relations as US House of Representatives Speaker Nancy Pelosi arrived in Taiwan for a frowned upon visit. by Beijing.
Read alsoWorld stock markets down, worried about tensions between the United States and China
The CAC 40 index fell 27.06 points to 6409.80 points, after a decline of 0.18% the day before, the first session of August.
The sectors most exposed to China avoided
Nancy Pelosi's visit to Taiwan "
was really the red thread of the day
", comments Alexandre Baradez, analyst for IG France, to AFP.
The symbol is indeed strong on the diplomatic level: Ms Pelosi is the highest American official to visit Taiwan since 1997. Investors fear that this will inflame tensions between the United States and China: Beijing has moreover qualified the attitude of the United States of "
extremely dangerous
".
The markets therefore remained cautious, avoiding the sectors most exposed to China, such as luxury.
After a very positive month of July on the markets, driven by better than expected corporate results, investors are once again focusing on the gloomy macroeconomic situation, between inflation and fears of recession.
“
We are in a situation of apprehension, but there is no panic
”, summarizes Mr. Baradez.
Investors are waiting in particular for the publication of the ISM index of activity in services in the United States on Wednesday, which will allow them to refine their opinion on the extent of the slowdown in the American economy to come.
Read alsoThe leader of the American deputies Nancy Pelosi landed in Taiwan despite warnings from China
Luxury does not shine
Luxury, heavy weight of the CAC 40, weighed on the index.
French groups in fact generate a large part of their turnover in China.
Kering lost 1.70% to 543.50 euros and its competitors LVMH and Hermes dropped 1.35% to 679 euros and 1.30% to 1,330 euros respectively.
L'Oréal for its part fell 1.48% to 363.80 euros.
Fear in favor of the defense
Worries about the geopolitical situation have benefited defense values.
The electronics group Thales took 0.92% to 126.25 euros while on the aviation side, Safran gained 0.21% to 107.14 euros.
Banks in the green
French banking stocks gained ground thanks to a rebound in interest rates on the debts of most countries.
Banks are also benefiting from increases in central bank interest rates, which will allow them to lend a little more expensively.
Read alsoCrédit Mutuel Alliance Fédérale signs a record half-year, driven by its retail banks
BNP Paribas took 1.18% to 46.40 euros and Crédit Agricole 0.40% to 8.95 euros, while Societe Generale remained close to balance, at 0.02%.
