(News Bulletin 247) – The Paris Stock Exchange is struggling to move forward after a difficult day on global financial markets. The CAC 40 is losing ground again on Tuesday, after having already lost 1.4% the day before.

The Paris Stock Exchange is struggling to get back on track after losing 1.42% on Monday, in a generalized panic that shook the world’s stock markets. The CAC 40 slipped another 0.6% to 7,109.21 points this Tuesday at mid-session, after a quick drop below 7,100 points around 11:40 a.m.

The latest statistics published this Tuesday morning in Europe are not going to help the Paris index to recover its colours. Retail sales in the Eurozone fell more than expected in June, by 0.3% when economists were expecting a less pronounced decline (-0.1%). And over a year, they contracted against all expectations, by 0.3% when an increase of 0.2% was expected by the consensus.

Other European stock markets, which were up in the wake of the rebound in Asian markets, turned down late in the morning after the statistics.

Asian markets recover

The Tokyo Stock Exchange notably recovered more than 10% this Tuesday with a slight decline in the yen, the day after a historic fall. The Nikkei, its flagship index, had collapsed by 12.4% against a backdrop of fears of a recession in the United States and an unwinding of “carry trade” operations on the yen that are no longer advantageous for investors.

“Stock markets have been spooked by weak U.S. jobs data, fueling fears that global economies are headed for a recession. Bond markets are starting to price in emergency rate cuts in response,” said Jon Bell, equity manager at Newton Investment Management.

“High-value US growth stocks are proving particularly vulnerable, as are the more cyclical parts of the market,” the specialist continues. Indeed, the New York Stock Exchange has not escaped the wind of panic blowing across global stock markets. The Dow Jones lost 2.60%, the Nasdaq dropped 3.4% and the S&P 500, 3% and is dangerously close to the 5,000 point threshold.

This Tuesday, the New York Stock Exchange is expected to open in the green, with the Dow Jones up 0.3%, the Standard & Poor’s 500 up 0.5% and the Nasdaq up 0.6%.

Airbus on the rise

On the business side, Airbus rose by 1.1% after announcing a rebound in deliveries of its new aircraft in July, to 77 units after 67 in June and only 53 in May.

On the SBF 120, Clariane appreciated by 6.6%. The retirement home operator confirmed its annual objectives after publishing improved half-year results.

On the foreign exchange market, the euro fell 0.4% to $1.0911 after benefiting from the recent weakening of the greenback. On the oil price side, the October contract on North Sea Brent gained 0.1% to $76.42 per barrel, while the September contract on WTI listed in New York climbed 0.3% to $73.19 per barrel.