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Home News Worried for the European economy, the Paris Stock Exchange plummets (-2.03%)

Worried for the European economy, the Paris Stock Exchange plummets (-2.03%)

The Paris Bourse closed down sharply (-2.03%) Friday, caught up with concerns about the European economy after the publication of PMI activity indicators below expectations.

The CAC 40 index sold 108.93 points to 5.269.92 points, in a volume of exchanges increased by 4.4 billion euros. The day before, he had finished on a hesitant note (-0.07%).

Over the week, the index lost 2.50%, bringing its gains since January 1st to 11.40%.

The Parisian rating had started slightly in the green, before bowing, swept away by a series of PMI indicators, in France and Germany in particular, showing a decrease in activity. The decline has continued to increase thereafter.

"The market has clearly returned to the publication of the PMI indices in France and Germany, especially those concerning manufacturing activity which are not only significantly lower than expected and in decline," said Daniel Larrouturou, director of AFP. Delegate General at Diamant Bleu Gestion.

The PMI index for the German manufacturing sector, which measures the growth of the activity, stood at 44.7 in March, while analysts expected 48. When the index is below 50, it means that activity decreases.

In the euro area, the PMI for the private sector as a whole fell to 51.3 points in March, against 51.9 in February, against a slight increase to 52 points expected. And in France, the index stood at 48.7 points.

"This is a reminder of the reality for indices that have risen a lot, thanks to the hope of a Sino-US agreement and accommodating central banks but neglecting statistics," he added.

The latest sharp drop came on February 7, the day the European Commission revised its 2019 forecasts for the eurozone, the expert noted.

"The Brexit has also remained in the background, even if the markets do not anticipate an exit without agreement.They see clearly that the European Commission does not have the will to drive the British into a deadlock," he said .

On Thursday night, European leaders granted the UK two options for a postponement of Brexit beyond the originally scheduled date of March 29, now setting the deadline to April 12.

According to this offer, if British MPs approve next week the divorce agreement concluded in November with the EU, the date of Brexit will be postponed until May 22.

In case of further rejection, London will have until April 12 to decide to hold European elections. This would then allow him to request a new postponement whose duration has not been fixed.

The Prime Minister will now have to submit her withdrawal agreement next week to MPs, at a date yet to be fixed.

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