Cac 40 tried to resist. In vain. The Paris index ends in decline of 0.18%, at 4,909.64 points, after gaining up to 1.95% in session, beyond the symbolic threshold of 5,000 points.
The market got carried away by the drop in Wall Street, where banks are nosing the day after the Fed’s announcements. In view of the results of the stress tests carried out on 34 establishments in the country, the American Federal Reserve decided to limit the dividends of the big banks and to prohibit them the repurchases of shares in the third quarter.
US banks struggling
These stress tests have indeed shown that the 34 banks surveyed could suffer up to $ 700 million in credit losses in the worst scenario of a “W” recovery. They could face a severe and prolonged recession, but, worse, some institutions could find themselves close to the minimum capital requirements.
On the stock market, securities like Goldman Sachs, JPMorgan Chase et Bank of America drop between 5% and 6.5%. In a completely different sector, Nike lost 5.7% after reporting on Thursday, its first quarterly loss in more than two years, weighed down by store closings following the health crisis. It seals the Dow Jones and the Nasdaq Composite, which fell 2.1% and 1.7% respectively as the Paris Stock Exchange closes. Note that trading volumes should significantly increase in New York on this day of revision of the Russell indices, including those of small caps (Russell 1.000) and large caps (2.000).
On the health front, the situation remains critical in the United States. Texas Governor Greg Abbott said on Friday that the state will reverse some of its reopening measures as coronavirus cases and hospitalizations continue to increase. ” At this point, it is clear that the increase in cases is largely due to certain types of activities, including Texans who gather in bars. “, He said in a statement.
« The resurgence of coronavirus cases raises fears that the rebound will be short-lived, as it is more and more likely that there will be voluntary economic outages or potentially more imposed by the government “Sums up Tom Essaye, founder of the Sevens Report, cited by CNBC. This is not good for consumer morale. In June, the final index of the University of Michigan stood at 78.1 points, against 79.2 on first approach and 72.3 in May. Household income in May fell 4.2% last month, less than expected, but household spending only rebounded 8.2%, compared with the expected 9.3% increase.
Techno parade
Side values, technology ended the week up, the Stoxx 600 partner signing the best sectoral performance in Europe (+ 0.7%). Worldline gagne 1%. Acts takes 1.07% and Capgemini 1,27%.
Bouygues rises by 0.38%. Bouygues Telecom to acquire alternative operator Euro Information Telecom (EIT) Crédit Mutuel for € 530 million. This operation should allow him to ” strengthen its fleet of over 2 million customers and expand its distribution network thanks to more than 4,200 local credit unions of Crédit Mutuel and CIC bank branches, and their 30,000 customer advisers “, Says Bouygues Telecom. As of March 31, 2020, it had 15.7 million customers, including 11.7 million in the mobile and 4 million in the fixed line.
Finally, Seb took 4.72% to evolve on its best level since mid-September 2019. The group of small household appliances announced that the impact of the Covid-19 health and economic crisis on its activity should be weaker than expected on his second quarter accounts.
–
