(News Bulletin 247) – The Paris Stock Exchange lost further ground this Tuesday, with a majority of CAC 40 stocks in the red.

Another difficult session for the CAC 40. The Paris index dropped 0.7% at mid-session on Tuesday to 7,578.70 points, after having already dropped 1.2% the day before. The context does not encourage risk-taking, after disappointing Chinese growth figures on Monday and many political events to dissect.

On Monday evening, Donald Trump announced his running mate for the US presidential election. The Republican candidate chose James David Vance, a young (39 years old) populist senator from Ohio, who believes that the “greatest threat” to the United States remains China, reports Bloomberg. This only reinforces the protectionist bias of the Republican camp, with Trump planning to introduce customs duties of 60% on imports from China.

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Luxury still dinged, Scor dives

In terms of economic indicators, the morale of German investors, measured by the Zew index, deteriorated more than expected in July, falling to 41.8 points against 47.5 points the previous month and a Reuters consensus of 42.3 points.

On the value side, the majority of the CAC 40 is in the red, and only a handful of values ​​are moving slightly in the green.

Luxury is struggling, with Kering losing 2.8% and LVMH 1.2%, still stunned by the disappointing figures from Burberry and Swatch the day before. This Tuesday, Hugo Boss also disappointed, and its share price plunged by 8.4% in Frankfurt. On the other hand, the Swiss Richemont delivered a publication deemed satisfactory by analysts and its share price rose by 0.5% in Zurich.

The day’s plunge is mainly blamed on Scor (-24.75%), which issued a profit warning on Monday evening, forced to revise upwards its provisions in its “health and life” division, due in particular to a higher than expected mortality rate in the United States. As a result, the result of this branch will show a significant loss in the second quarter.

On other markets, the euro gained 0.06% against the dollar to $1.0933. Oil fell. The September contract on North Sea Brent fell 0.8% to $84.15 a barrel while the August contract on WTI listed in New York fell 0.9% to $81.14 a barrel.