The Paris Bourse was down 0.92% at mid-session, questioning the continuation of post-Brexit negotiations and two days before a meeting of the European Central Bank.
The CAC 40 index lost 51.24 points to 5,522.14 points around 1:15 p.m. The day before, it had lost 0.64%.
After remaining around the equilibrium during the first hour of the session, the Parisian odds ended up dropping, like other European places like London (-0.54%) and Frankfurt (-0, 47%).
US market futures also fell: the Dow Jones fell 0.52%, the broader S&P 500 index fell 0.58% and the Nasdaq fell 0.48%.
“The uncertainty surrounding the future relationship between the UK and the EU is weighing” on the mood of investors, said David Madden, analyst at CMC Markets. They “went from cautiously optimistic Friday to apprehension” since the start of the week over a deal.
British Prime Minister Boris Johnson said on Tuesday that positions between London and the European Union were still very distant, before a trip to Brussels this week to try to unblock deadlocked post-Brexit negotiations.
Discussions can continue until the weekend, before the holding of a European summit devoted in particular to post-Brexit relations. Another part of the meeting will be devoted to the European Union’s 750 billion euro recovery plan, threatened by Hungarian and Polish vetoes.
Markets are also awaiting the European Central Bank meeting on Thursday. It must announce new measures to deal with the economic slowdown caused by the new lockdowns in November.
His reaction to the rise of the euro, currently at $ 1.21, will also be expected.
“Even if the ECB does not target an exchange rate, which it repeats regularly, several voices were heard when the euro came looking for the $ 1.20 in September, indicating that the exchange rate + counted + in the choices of monetary policy “, remind analysts at IG France.
So far in Europe, “the central bank has done five times more than in 2008,” said Serge Pizem, Head of Multi-Asset at Axa IM.
Finally, if in the United Kingdom the vaccination campaign against Covid-19 has started, the epidemic situation remains difficult in Europe, where France and Germany could delay the stages of deconfinement.
Technology resists better
Like Monday, technology stocks were positioned at the top of the CAC 40. Téléperformance gained 0.84% to 274.60 euros, and Dassault Systèmes 0.52% to 154.75 euros.
Banks in decline
Conversely, the bottom of the Paris index was occupied by cyclical stocks, depending on economic activity. Before the meeting of the European Central Bank, Crédit Agricole fell 3.03% to 10.41 euros and Société Générale 1.80% to 17.48 euros.
In Frankfurt, Deutsche Bank lost 1.26% to 9.45 euros.
Euronext CAC40
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