Questions about the coronavirus make new actions fold

Paris, the CAC 40 ended down 0.39% 6,069.35 points. The British Footsie cd 0.58% and the German Dax cd 0.01%.

The EuroStoxx 50 index lost 0.15%, the FTSEurofirst 300 fell by 0.14% and the Stoxx 600 by 0.13%.

“The mood of the market lacks certainty this weekend (…) Most traders still lack visibility on the way in which the virus is spreading in China”, commented Pierre Veyret, economist at ActivTrades.

Chinese health officials on Friday reported more than 5,000 cases of additional Covid-19 coronavirus contamination in mainland China, hours after Washington criticized Beijing’s reaction to the epidemic and said it lacked transparency.

The death toll in China increased by 121 additional deaths on Thursday, bringing 1,380 the number of fatal cases in the country. In their daily bulletin, the authorities of Hubei had counted on the day of Wednesday 242 dead and 14,840 new contamins in the province.

“Our basic scenario is for the epidemic to be fully under control by the end of March (…) Its negative impact on the economy will be contained in the first quarter,” said Mark Haefele, economist at UBS Global Wealth Management .

Some investors are clinging to the idea that the People’s Bank of China could announce further stimulus measures in response to any economic slowdown.

VALUES

After doing the yo-yo during the session, the Renault action ended on a decline of 0.90% after the car manufacturer said not to exclude the closure of factories to correct its accounts, its annual results having turned red in 2019 for the first time in ten years.

EDF took 9.68% and TF1 gained 5.97% after the publication of sharply rising annual results.

Conversely, the satellite operator Eutelsat cd 6.50% after its first half results and Technicolor fell 20.70% after announcing its 2020-2022 strategic plan on Thursday evening.

Red lantern of the Stoxx 600, Royal Bank of Scotland fell 6.82% after the presentation of a new strategy which foresees a sharp reduction in investment banking activities.

A WALL STREET

At the time of the European closure, the Wall Street indices are moving in dispersed order: the Dow Jones fell by 0.09% but the S&P gained 0.08% and the Nasdaq Composite 0.27%.

In addition to concerns about the coronavirus, there are macro and macro disappointments to explain the subdued development of the equity markets. Figures released by the Commerce Department suggest that household spending slowed in January, which could raise concerns about the economy’s ability to continue growing at a moderate pace.

American industrial production fell more than expected in January and was revised down the previous month.

Values, the semiconductor manufacturer Nvidia climbed 8.05%, a higher record, after its quarterly forecasts better than expected.

EXCHANGE

The euro stabilized against the greenback after falling to a low of around three years, 1.0826 dollars, due to concerns about the shape of the European economy.

Eurozone growth unsurprisingly slowed in the fourth quarter due to a contraction in France and Italy and stagnation in Germany, show gross domestic product (GDP) figures.

The “dollar index” is flying a high of almost four months against a basket of six other benchmark currencies.

RATE

Questions about the coronavirus and poor indicators – in Europe and the United States – are reflected in a decline in market operators on government bonds whose yields are falling.

The yield on the German ten-year Bund ended down -0.4% and that of the American ten-year debt lost three basis points 1.583%.

Petroleum

Crude oil prices are rising and moving towards their first positive weekly performance after five weeks of decline, with investors betting that the economic impact of the coronavirus will be short-lived and that China will intervene to counter its negative effect on economy.

Brent gained 1.4% 57.13 dollars a barrel and light American crude (West Texas Intermediate, WTI) ahead by 1.24% 52.06 dollars.

(Laetitia Volga with Tom Wilson, said by Bertrand Boucey)

by Laetitia Volga