Paris bourse opened 0.55% lower on Tuesday as markets focused on a visit by the speaker of the U.S. House of Representatives and her possible but unconfirmed trip to Taiwan.
Around 10:10 am, the star CAC 40 index was down 35.15 points at 6,401.71. The previous day, the square edged down to 6,436.86 after its best monthly performance in July since November 2020.
Markets are closely watching Nancy Pelosi’s trip to Asia, which could lead to a trip to Taiwan on Tuesday night and Wednesday, and worries about the tensions between the United States and China.
Stephen Innes of SPI Asset Management commented that in Asia, “prices have fallen sharply on fears of a possible escalation between the U.S. and China and the situation could deteriorate rapidly.”
If her visit is confirmed, the congressional representative would be the highest US official to visit the island since her predecessor Newt Gingrich in 1997.
But Beijing considers the island part of its territory to be reunited by force if necessary, and has repeatedly warned Washington not to view the visit of senior officials as a major provocation.
“Between escalating tensions across the Taiwan Strait and growing concerns about an economic slowdown, investors are taking refuge in the bond market,” Innes said.
Vilmorin traces its path
French seed company Vilmorin rose 4.60% at 42.10 euros per share at around 10:10 am, surpassing its annual turnover target of 1.58 billion euros despite the Russian-Ukrainian conflict.
SMCP without crease
At around 10:10 am, the SMCP textile group (Sandro, Maje, Claudie Pierlot and Fursac) acquired 2.29% in Paris at €5.50 per share. To the satisfaction of investors, the group posted record sales in the first half and doubled its net profit 20 times, back to pre-pandemic levels. Despite the impact of Covid-19 on Asia, the organization confirmed its forecast for 2022.
French canned and frozen vegetable specialist Bonduelle fell 1.20 percent to 13.12 euros, he confirmed on Monday, as the group acknowledged rising production costs and difficulties with its fresh activity in the United States would prevent it from hitting annual targets.