The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/ERIC PIERMONT)
The Paris Stock Exchange fell 0.24% in early trading on Monday, the upward momentum for several weeks somewhat dampened by the return of fears about the political handling of Covid-19 in China.
The CAC 40 star index fell 16.16 points to 6,628.30 points at around 9:30 am. On Friday, the Paris Stock Exchange rose by 1.04%, thus completing its seventh week of increases (+0.76%), close to the levels of April 2022.
Risk aversion in Asia has tainted the Paris market, like all European markets.
Investors are tense over Sunday’s announcement from Beijing of the first virus death since May. The rise in the number of infections in China is dampening hopes of an imminent relaxation of the country’s stringent health policy, where local confinements, quarantines and screenings continue to be imposed on a large scale.
“Easing the restrictions for Covid-19 will not be as simple as some had assumed. They are improving thanks to the reopening” of the country, estimates Stephen Innes, of Spi AM.
On the general trend, “the powerful one-month rebound in risk appetite seems to be on hold, with a stabilization of equities and the dollar for a week”, note the analysts of La Banque Postale, in particular because the revaluation of the future central bank the policies have already been made. During the week, the minutes of the last meeting of the American Central Bank and the European Central Bank are published.
Vallourec comes out of the red but falls on the stock market
Vallourec, which specializes in seamless pipes for the oil industry, came out in the red in the third quarter, benefiting in particular from an “energy security concern” in countries without Russian gas as well as the “difficult” decision to close plants in Germany in 2023 to ensure its “survival”. Operating profit, however, fell short of analyst expectations.
The French group announced for the third quarter a group net profit of 6 million euros after a loss of 7 million last year, on a turnover up 54% to 1.28 billion euros.
The share fell by 9.05% to 10.49 euros. In 2022, it will show an increase of about 20%.
Lysogen makes the yoyo
Shares of Lysogene, which jumped nearly 60% on Friday after it indicated it would hold a meeting on Nov. 23 to present new data on study results from an investigational therapy for the genetic disease MPS IIA, fell from 28. 29% at 0.55 euros on Mondays.