The Paris Stock Exchange takes a breath, the announcement by Johnson & Johnson of a “pause” in its clinical trials on its candidate vaccine against Covid-10 after a patient contracted an unexpected disease putting a brake on the recent bullish streak. This setback is not the first of its kind (see AstraZeneca, which has its trials quickly) and should not be the last either, while many potential vaccines are in the testing phase around the world. “ Since a vaccine is the surest way to return to pre-covid growth levels, markets are particularly sensitive to developments and news On the subject, summarizes Fiona Cincotta, market analyst at City Index. Investors are therefore looking for catalysts as the opening of the quarterly results season approaches in the United States and less than a month before the American presidential election, with the nagging question of the stimulus plan, partial or expanded, of Congress.
Shortly after 11 am, the Cac 40 yields 0.28% to 4,965.28 points in a tight business volume of 495 million euros.
US banks and Apple in the sights
The Chinese markets did not succeed this morning to consolidate their surge of the day before, despite the strong surge in the country’s trade in September . Reports that several power plants across the country have been ordered to stop using Australian coal have sounded like a trade war.
Citigroup and JMorgan Chase banks kick off the quarterly releases on Tuesday, awaiting Morgan Stanley , Goldman Sachs , Bank of America and Wells Fargo later in the week. Apple must aside its unveil in the evening new products, including the iPhone 12, the brand’s first device to be compatible with 5G. The iPhone accounts for about half of Apple’s sales. It is also this Tuesday that Amazon launches its Amazon Prime Day, which takes place over two days.
On the statistical front, the business climate deteriorated in Germany in October, the index established by the ZEW institute falling to 56.1 points, against 73 expected and 77.4 in September. To follow, the IMF economic forecasts, then the September inflation figures in the United States.
Airbus weighed down by a degradation of JPMorgan
The sharpest drop in the Cac 40, Airbus fell 3.5%. JPMorgan Cazenove downgraded the aircraft manufacturer’s title from “neutral” to “underperformance”. According to the broker, air transport should only recover by around 50% next year, while the profitability of companies should remain weak. As a result, the author of the note revised down its forecast for Airbus deliveries by 10% to 633 aircraft in 2021.
For its part, Air France-KLM is down 2.7%.
Recently searched, banks are undergoing clearance. BNP Paribas , Crédit Agricole and Societe Generale lost around 2%. The associated European Stoxx 600 index shows the largest sector decline (-1.3%).
Sanofi takes 0.8%. The group announced that Dupixent, developed with the American Regeneron, has obtained convincing results in a clinical trial on children with severe asthma.
The largest increase in the flagship index, Unibail-Rodamco-Westfield climbs 3.3%. The commercial real estate specialist has reached an agreement to sell an office building in Issy-Les-Moulineaux, in the Paris region, to French institutional investors for 620 million euros.
Worldline climbs 0.9%. Jefferies raised its target price on the value of 92 to 110 euros by maintaining its recommendation to “buy”. Jefferies meanwhile went from “underperformance” to “neutral on TechnipFMC , which gained 1.7%.