Former Paris Stock Exchange
The main European stock markets are in the red on Friday morning after the announcements of the Chinese recovery plan, following the meeting of the Standing Committee of Parliament.
European indices, which were indicated in the green in future contracts, turned around at the opening, despite the gains recorded the day before on Wall Street.
In Paris, the CAC 40 lost 0.33% to 7,400.57 points around 08:30 GMT. In London, the FTSE 100 fell by 0.13% and in Frankfurt, the Dax lost 0.18%.
The EuroStoxx 50 index lost 0.14% and the FTSEurofirst 300 0.16%. The Stoxx 600 nibbles 0.02%, thanks in particular to the defensive health sector which advances by 0.94% and to new technologies (+0.49%) which benefit from the relaxation in the bond market.
Futures contracts on Wall Street forecast an increase of 0.05% for the Dow Jones, 0.09% for the Standard & Poor's 500 and 0.08% for the Nasdaq the day after a session where the latter two clues shone.
American markets have been in euphoria since the election of Donald Trump, who pledged to lower taxes and deregulate the economy, measures considered favorable to businesses.
Thursday's rate cut by the US Federal Reserve (Fed) also caused bond yields to fall, providing support to equity markets.
Jerome Powell, the president of the American central bank, also declared on Thursday that the return of Donald Trump to the White House would not have a short-term impact on monetary policy.
In Europe, where the situation in China is particularly closely followed, the Standing Committee of the National People's Congress (NPC), China's supreme legislative body, approved a bill aimed at raising the debt ceilings of communities local authorities during a meeting held from November 4 to 8, a senior official said.
China will also authorize local governments to issue an additional 6,000 billion yuan (837.7 billion dollars or 777.3 billion euros) of bonds to be exchanged for off-balance sheet or “hidden” debts over three years, he also added. These plans, which aim to reduce systemic risks in a declining economy, have not, it seems, convinced investors in Europe.
Furthermore, company publications are once again livening up discussions, notably in luxury Richemont which fell by 3.21%. The owner of the Cartier brand reported on Friday a 1% drop in sales over the three months to the end of September. The European luxury sector fell by 1.58, while Kering, Hermès and LVMH fell by 1% to 3%.
JCDecaux (-8.44%) and Euronext (-2.69%) are in the red after their results and forecasts.
IAG, the owner of British Airways, jumped almost 8% thanks to a quarterly profit that exceeded forecasts.
Monte Dei Paschi Di Siena takes 3.53%, supported by the announcement of a 31% increase in its profit in the third quarter.
Pirelli (+2.2%) is also doing well, the tire manufacturer having published a better than expected operating profit in the third quarter.
(Writing by Claude Chendjou, edited by Kate Entringer)
