CAC 40: the decline should continue

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(Paris) – The Paris Bourse should open lower on Thursday, extending its withdrawal the day before the reopening of Wall Street after the day of tribute to George Bush Sr. yesterday and the publication of a series of US indicators.

Around 8:15, the future contract on the CAC 40 – December delivery – gives up 47 points to 4888.5 points, announcing a beginning of the session in negative territory.

By yielding 1.4% last night, the Paris market had almost finished at the low of the day, at 4944 points, but had not done too badly given the losses of more than 3% posted on Wall Street Tuesday evening.

Still, the ACC has just lost more than 3% in a straight line and that the month of December is negative again, which should push the index to a re-test of 4925 points, its floor of 20 November.

'The mood of investors remains heavy and Asian places were changing in the red this morning', note analysts Danske Bank.

After a drop of 2.4% Wednesday, the Tokyo Stock Exchange again released more than 1.9% this Thursday.

'The latest wave of concern is related to the business case, after the Chinese giant Huawei's chief financial officer, Wanzhou Meng, was arrested by the Canadian authorities following an extradition request from the United States,' explains Danske Bank.

"His arrest raises a number of questions about the prospects for a Sino-US trade deal, even though encouraging comments were made on both sides of the Pacific yesterday," the Danish bank said.

On the oil market, a barrel of US light crude fell by 1.1% to 52.3 dollars pending the announcement of OPEC, which meets today in Vienna.

Numerous statistics are on the agenda of the day, including the latest productivity figures and orders to the industry.

Some indicators expected to be released yesterday – such as the ADP survey or the non-manufacturing ISM index – are also expected to fall today.