Cac 40 wins on risk aversion over Taiwan tensions, market news

The Paris Stock Exchange continues to decline amid renewed tensions between Beijing and Washington over Taiwan, which China has always considered an integral part of its territory. Combined with rising concerns about global growth, this tug-of-war put an end to renewed interest in risky assets, allowing the major European and US indices to post their best performance since 2020 in July.

mid session, Bedroom 40 lost 0.70% to 6,391.50 points on a business volume of 647 million euros. Contracts future on American indices, the yield is from 0.5% to 1%.

Asian markets, and in particular Chinese ones, closed on Tuesday after information from Liberty Times according to which the speaker of the US House of Representatives Nancy Pelosi, who began her tour of Asia, should land in Taiwan on Tuesday at 22:30 local time. On this occasion, she was able to meet with President Tsai Yingwen as part of an unrivaled visit by an American parliamentarian to the island for 25 years.

Taiwan Strait invaded by Chinese fighter jets

China warned the US of the consequences of such a visit. This morning, several Chinese fighter jets flew over an area near the Taiwan Strait demarcation line, an island official familiar with the operations cited by the agency said. Financial Times. ” All eyes will be on the Chinese military to see how they react if Pelosi does go to Taiwan. wrote Edward Moya, market analyst at Oanda, in a note early this morning.

Semiconductor manufacturers are among the main victims of this tension, as the bulk of chip production is in Asia. The European Stoxx 600 Tech Index fell 1.8%. STMicroelectronics lose 1%, Infineon Technologies 1.7% and ASML 2.6%.

Sensitive to the political and economic situation in China, the luxury goods sector is in retreat. LVMX loses 1.9%, Kering 1.5% and Hermes one%.

On the contrary, values ​​related to protection are circled. Thales thus accepts 1% and Dasso Aviation 1.5%.

On sovereign debt, US 10-year yields hit a four-month low of 2.4982% this morning (bond prices rise when yields fall) amid a “flight to quality”. The bond market is supported by the hope that the slowdown in the United States may encourage the Fed to be less hawkish, while serving as a safe haven for investment ahead of a possible visit by Nancy Pelosi to Taiwan.

Bouygues confirms his predictions

Bouygues occupies 0.7%. The construction and telecommunications group reaffirmed its financial targets for 2022 after half-year results beat analysts’ expectations. Its subsidiary Bouygues Telecom, for its part, revised its full-year guidance by significantly raising its EBITDA (gross operating surplus) growth target.

In the SRD, Vilmorin earns 5.5%. The seed company posted a 6.2% increase in turnover compared to the 2021-2022 financial year and raised its full-year forecasts after lowering them in May.

ADP increased by 1.8%. HSBC has upgraded its recommendation for the airport operator’s name from ‘lighten’ to ‘keep’. On the other hand, Societe Generale downgraded Nexans from “buy” to “hold”. Shares in the cable maker shed 1.4%.

Finally, Exclusive networks occupies 5.9%. The turnover of a provider of cybersecurity services and technologies for companies for the first time in history exceeded the billion mark.