The Paris Stock Exchange, like the other European markets, is expected to rise slightly Tuesday in the first exchanges, apparently driven by a desire for a technical rebound after the spectacular tumble of the previous day.
Around 8:15 am, the futures contract on the CAC 40 index – delivery at the end of March – climbs from 42.5 points to 5826.5 points, announcing a recovery at the opening.
The investors welcome the ‘positive’ progress made in the fight against Covid-19 in China, with the resumption of certain activities in the country.
Beijing has thus authorized companies located in regions associated with ‘relatively low’ risks to resume production, while those present in medium-risk areas will be able to resume work in an ‘orderly’ manner.
These measures have enabled groups such as Airbus and Honeywell to restart their activities.
Another encouraging news is that President Donald Trump has announced that he will seek to raise some $ 2.5 billion from Congress to help fight the epidemic.
The White House notably assured that an envelope of more than a billion dollars would be devoted to the development of a vaccine against the pathogenic agent.
Comments deemed reassuring, while the CAC 40 fell 4% to 5792 points yesterday, in significant volumes of more than $ 7.6 billion.
“The big difference from yesterday’s decline from those that may have occurred in recent weeks is the magnitude of the decline,” worries Danske Bank.
“More generally, the continuing uncertainty is particularly penalizing and this situation may well continue in the coming days,” warns Danske Bank.
‘The stock market world of 2002/2003 is certainly different, the injections of liquidity by the Central Banks are in a permanent support to the actions since the financial crisis of 2008, but the corrective risk of 20% of fall gains in probabilities whereas the indices European and American stock exchanges are still close to their historical records.’
CAC 40 SHORT (Sell)
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