The Paris Stock Exchange begins the week on an uncertain note, marked by worrying news from China. The CAC 40 actually lost 0.21% in the first hours of trading. It appears that the French stock market is being affected by a slowdown in Chinese growth. A situation that also concerns global investors!
The Paris Stock Exchange under pressure in the face of the Chinese crisis
THE Paris stock market shows signs of running out of steam, particularly since the Chinese economy is struggling to recover despite recent stimulus measures. The Chinese Central Bank has just announced a reduction in its interest rates to stimulate growth. Unfortunately, the effects are slow to be felt on the market.
For now, the Paris Stock Exchange and its CAC 40 index continue to decline. They lost almost 15 points from the opening this Monday.
A limited impact of Chinese measures on the CAC 40
Despite the Chinese government's efforts to revive the economy through interest rate cuts, results so far have been mixed. THE European investorsespecially those exposed to the Chinese market, remain skeptical of a rapid recovery.
Analyst Andreas Lipkow supports for example that European companies, including those in the CAC 40, may not immediately benefit from the potential improvement in real estate market in China. The situation therefore continues to weigh heavily on the Paris Stock Exchange, with uncertain prospects.
Paris Stock Exchange: What are the prospects for the coming week?
Investors are closely watching the upcoming economic indicatorsnotably the Flash PMI surveys for October which will be published on Thursday. This data will indeed provide a clearer picture of the economic situation in France and the euro zone.
For the moment, the CAC 40 remains vulnerable to global economic fluctuations (and particularly the evolution of the Chinese market). The Paris Stock Exchange could therefore continue to face turbulence as long as the situation in China does not improve.
With the Paris Stock Exchange plagued by uncertainty, investors must therefore exercise caution.
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