The Paris Stock Exchange in decline, the markets suspended from Pelosi’s plane

The Paris Stock Exchange in decline, the markets suspended from Pelosi’s plane

The Paris Stock Exchange fell 0.55% Tuesday at the start of a session where the markets have their eyes riveted on the trip of the President of the American House of Representatives and her probable, but not confirmed, visit to Taiwan.

The star CAC 40 index lost 35.15 points to 6,401.71 points around 10:10 a.m. The day before, the square ended slightly down at 6,436.86 points after experiencing its best monthly performance in July since November 2020.

The markets are paying close attention to Nancy Pelosi’s Asia tour which could give rise to a trip to Taiwan on Tuesday evening and Wednesday and are worried about the tensions generated between China and the United States.

In Asia, “prices have fallen sharply for fear of a possible Sino-American escalation and the situation could quickly deteriorate”, remarks Stephen Innes, of SPI Asset Management.

The representative of the members of Parliament would be, if her visit is confirmed, the highest American official to visit the island since her predecessor Newt Gingrich in 1997.

But Beijing considers the island as part of its territory to be reunified, by force if necessary, and has repeatedly warned Washington against a visit by the senior official which would be seen as a major provocation.

“Caught between escalating tensions in the Taiwan Strait and growing concerns about a slowing economy, investors are taking refuge” in the bond market, underlines Mr. Innes.

Vilmor’s trace son bridge

The French seed company Vilmorin gained 4.60% on the stock market around 10:10 a.m. at 42.10 euros per share after having exceeded its annual turnover target despite the Russian-Ukrainian conflict, with 1.58 billion euros.

No crease at SMCP

The SMCP textile group (Sandro, Maje, Claudie Pierlot and Fursac) took 2.29% in Paris at 5.50 euros per share around 10:10 a.m. Investors were satisfied that the group achieved record sales in the first half of the year and multiplied its net profit by 20, which returned to its pre-pandemic level. The group confirms its forecasts for 2022 despite the impact of Covid-19 in Asia.

Expensive preserves

The French canned and frozen vegetable specialist Bonduelle lost 1.20% to 13.12 euros as the group acknowledged that rising production costs and the difficulties of its fresh activities in America will prevent it from reaching its annual objectives, he confirmed on Monday.

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