The Paris Stock Exchange should open in retreat, eyes on the United States

The Paris Stock Exchange was moving towards a declining opening Thursday morning, the spread of the epidemic in the United States making fear the worst for the world’s largest economy, despite the historic stimulus plan approved by the United States Senate.

The futures contract on the CAC 40 lost 2.78% forty minutes before the opening of the session. The day before, it had finished up sharply by 4.47% to 4,432.30 points.

Wall Street, for its part, ended in scattered order, the star Dow Jones index having finished in the green, like the S&P, while the Nasdaq fell slightly.

This Thursday, “European indices should open lower despite the signing of an 883-page agreement between Republicans and Democrats to unlock 2,000 billion dollars to counter the negative effects of the coronavirus,” said in a note John Plassard, specialist of investment at Mirabaud.

“The negative trend in the morning is to be attributed to the almost uncontrolled spread of the virus in the United States and in particular in New York, which is increasingly confined,” he added.

In addition, investors were now anxiously awaiting the latest figures from weekly claims for unemployment benefits across the Atlantic, which “are likely to greatly exceed the million mark,” said Michael Hewson, an analyst at CMC Markets.

Wednesday, European markets had yet “recorded their second session of decent gains, helped by the prospect of higher stimulus spending”, especially in Germany and the United States, said Mr. Hewson.

The US Senate unanimously approved on Wednesday a “historic” plan of 2,000 billion dollars to support the first world economy, asphyxiated by the coronavirus pandemic which has already infected nearly 69,000 people and has caused more than 1,000 deaths in the United United.

The plan has yet to be approved by the Democrat-controlled House of Representatives in a vote scheduled for Friday before being promulgated by the President.

In Germany, the deputies, after years of budgetary rigor, also adopted a “historic” rescue plan of nearly 1,100 billion euros.

As for indicators, German consumer sentiment should collapse in April after a first drop in March, reflecting the worsening of the new coronavirus pandemic and the restrictions associated with it, according to the GfK barometer.

In France, the business climate fell “heavily” in March, yielding 10 points compared to February, its sharpest decline since the launch of this indicator in 1980.

In France, containment measures are causing a loss of economic activity of around 35% currently, with a “fairly heterogeneous” effect depending on the sector, INSEE estimated Thursday.

The latest estimate of US growth in the 4th quarter should also be scrutinized, as well as the Bank of England (BoE) monetary policy meeting.

Finally, G20 leaders are holding a virtual summit on Thursday to coordinate their response to the threat of recession posed by the new coronavirus on the global economy.

VALUES TO FOLLOW

ADP: Orly airport will temporarily stop its activity from March 31, victim of a collapse of more than 90% of air traffic due to border closings linked to the spread of coronavirus, announced Wednesday its manager, Groupe ADP.

JCDecaux: the giant of advertising displays on Wednesday gave up its forecasts for the first quarter, when it already predicted a fall in income in the face of the crisis linked to the coronavirus, and warned that the second would be even worse.

Neoen: the producer of renewable energy saw its net profit almost triple in 2019, against the background of strong growth in its activity driven in particular by solar energy, but anticipates a slowdown in construction with the Covid-19 epidemic, according to a report published Wednesday.

Valneva: the Franco-Austrian vaccine specialist has obtained favorable results in the United States for an anti-chikungunya vaccine and will move on to a phase of massive trials, he announced Wednesday.

jra / jld / spi