(News Bulletin 247) – The CAC 40 once again ends in decline, despite the rebound of Sanofi. Operators are limiting the taking of initiatives due to a lack of catalysts to find the path to growth. The CAC 40 closed down 0.3% the day after a contraction of 1%.

For the second consecutive session, the Paris Stock Exchange closed in negative territory. The measures intended to revive the Chinese economy did not convince the markets. The latter are also opting for caution ahead of Jerome Powell’s hearings, which should give some indications of the US Federal Reserve’s intentions with regard to its monetary policy.

The CAC 40 thus lost 0.27% to 7294.17 points after having lost 1% on Monday evening. On Wall Street, the shortened week also starts in the red, the American place having been closed Monday for “Juneteenth”, day of commemoration of the end of slavery in the United States. The Dow Jones yields 0.9% when the S&P 500 gives back 0.8% at the close of the places of the Old Continent.

As in Europe, American operators did not hide their disappointment with the content of the latest measures to give a boost to the Chinese economy. The People’s Bank of China certainly reduced two benchmark rates on Tuesday to encourage investment and thus stimulate activity. But since last week press reports have reported plans by the Chinese executive to revive the economy, especially real estate. However, this information is slow to materialize.

“The lack of additional details on China’s stimulus package, as well as additional pressure on rates due to uncertainty over further rate hikes and a slowing global economy, have led investors Europeans to take profits slightly,” notes Michael Hewson of CMC Markets.

An announcement of stimulus measures from the Chinese government is unlikely before Chinese Premier Li Qiang returns from a European tour, according to AFP.

Sanofi in good shape, OPAS on Paragon ID

As for values, Sanofi tried to play the shock absorbers on the CAC 40, with an increase of 3.7% at the close, benefiting from a favorable decision against Boehringer Ingelheim in the context of the Zantac file.

Airbus rose by 0.4%, the aeronautical group is leading the race in the showdown with Boeing on orders from airlines at the Paris Air Show. Air India has signed a firm order for 250 Airbus.

Neoen took its side 4.3%. The renewable energy producer with a name in palindrome has raised its gross operating profit (Ebitda) target for 2025, after obtaining a major contract in Australia.

As for small and mid-caps, Paragon ID soars by more than 33% to approach the price of the simplified takeover bid of its majority shareholder Grenadier Holdings, at 38.01 euros per share.

On other markets, the euro lost 0.2% to 1.0905. Oil is giving ground after moving up slightly at midday. The August contract on Brent from the North Sea recovers 1.3% to 75.07 dollars a barrel while that of the same expiry on WTI quoted in New York plunges 2.2% to 70.33 dollars a barrel .