Published on 29/12/2022 at 10:16 – Updated on 29/12/2022 at 10:16
The Paris Stock Exchange broke even on Thursday, December 29, amid concerns about the economic fallout from the rise in Covid cases in China.
The CAC 40 star index was stable at 6,514.85 points as of around 1pm. On Wednesday, fears over China caused the Paris market to retreat by 0.61%.
Beijing’s announcement earlier in the week that it would end mandatory quarantines on arrival on January 8 was welcomed by financial markets. But the risk of negative consequences begins to weigh more and more.
“The good news with China reopening is that it should drive global growth»believes Ipek Ozkardeskaya, analyst at Swissquote Bank, but “the bad news» it is an upside risk “energy and commodity prices, hence inflation, central bank interest rate hikes and potentially rising Covid cases worldwide»warns.
China, at the center of the questions
The US will require a negative Covid test for all travelers from China due to the explosion in the number of cases in this country and the “lack» information from Beijing, US health authorities announced Wednesday, mimicking measures already taken by other countries such as Japan and Italy.
On Wall Street, the three major indices all lost more than 1% on Wednesday after a faltering session marked by rising bond rates.
Furthermore, several health experts warn that the explosion of cases combined with the lifting of health measures in China constitutes potential breeding ground for the emergence of new variants, “which is particularly worrying, especially in an environment where nerves are already on edge after a year of rate hikes, runaway inflation and war […] at the gates of NATO»comments Stephen Innes, analyst at SPI Asset management.
In France, President Emmanuel Macron has “required adequate protective measures» of the French in government, which he assures on Wednesday “closely follow the evolution of the situation in China».
Positive results for Adocia
The pharmaceutical laboratory Adopts announced positive results in a Phase 1 study of its own on Thursday “ultra-rapid insulin» BioChaperone Lispro, used in the treatment of diabetes, tested in China in collaboration with the pharmaceutical company Tonghua Dongbao.
Its share rose by 6.37% to 3.34 euros.
Le Revenu, with AFP