Paris fell 0.64% while Frankfurt lost 0.21%. The London index finished a little above equilibrium.
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European stock markets experienced a weak Monday, worried and focused on negotiations around a post-Brexit deal as the end date for talks draws closer.
Paris fell 0.64% while Frankfurt lost 0.21%. The London index finished a little above equilibrium, supported by multinational rating companies which benefited from the fall in the pound due to Brexit.
In this climate of caution, investors went a little deeper into the bond market. The sovereign rates of the countries of the euro zone have therefore fallen significantly.
“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.
On Monday, the British government ruled out resuming negotiations next year if it fails to find a compromise by the end of the year.
“The situation is tense,” said David Madden, analyst at CMC Markets, who also noted the vagueness in which investors are, if only on the continuation or not of the negotiations during the week.
This situation “leads to profit taking”, analyzes Mr. Bulle.
“In the longer term, investors are also waiting for the recovery plan in the United States. For now, the prospect of its implementation prevents big drops in the market, which is still evolving at a high level, ”he continues.
U.S. markets were moving in a scattered order around 6:25 p.m. (5:25 p.m. GMT). The Dow Jones flagship index fell 0.47%, the S&P 500 expanded index fell 0.17% while the high-tech Nasdaq index rose 0.39%.
Sharp decline in banks
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.
In France, the Societe Generale group, which will merge its networks of Societe Generale and Crédit du Nord banks, leading to the closure of 600 branches, sold 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 London, Lloyds Banking Group fell 4.33% to 37.34 pence and in Frankfurt, Deutsche Bank fell 1.73% to 9.57 euros.
London multinationals advance
The weakness of the pound has the advantage of automatically increasing the value of the results achieved by these companies in other currencies. The tobacco company BAT took 4.70% to 2,849.00 pence and the catering giant Compass 1.64% to 1,486.50 pence.
The indices in brief
Paris – CAC 40: -0,64% 5.573,15 points
Londres – FTSE 100: +0,08% 6.555,39 points
Frankfurt – Dax: -0.21% 13.271 points
Madrid – IBEX 35: -0,57% 8.275,60 points
Milan – FTSE MIB: -0,34% 22.103,55 points
Zurich – SMI: +0,10% 10.375,38 points
Amsterdam – AEX: +0,09% 616,20 points
Brussels – Bel 20: -0.79% 3,697.56 points
Lisbon – PSI 20: + 0.02% 4,703.77 points
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