Caution prevails at the Paris Stock Exchange on Thursday. After starting this crucial day for Europe in the green, the CAC 40 lost 0.88% to 3721.38 points in mid-day. The London Stock Exchange was down 0.80% to 5807 points and the DAX index of the Frankfurt Stock Exchange loose 0.87% to 7158 points.
As with other global exchanges, all operators will have the eye to Brussels where to begin 1:01 p.m. at the extraordinary summit of the leaders of the euro area. They have an obligation to find a solution on a new plan of aid to Greece if they want to prevent contagion from the debt crisis. Angela Merkel and Nicolas Sarkozy on Wednesday reached a common position on the new financial rescue plan and a private sector participation.The content of the agreement between the German Chancellor and French President was not specified but to do so, it took seven hours of talks "very tight" in Berlin, according to members of the French delegation. The two leaders called on mid-term president of the European Central Bank, Jean-Claude Trichet, to join them in Frankfurt, suggesting that the compromise has its support. José Manuel Barroso, President of the European Commission launched Wednesday a warning more serious than usual to the leaders of the euro area.
But doubt was again set on Thursday after the statements of leading finance ministers of the euro area, Jean-Claude Juncker, who did not rule out a possible default of Greece.Jean-ClaudeJuncker also considered that an agreement on a tax on European banks to help finance a new aid program in Athens would be difficult. "I do not think there will be an agreement," he said.
Obama confident
On the foreign exchange market, the euro declined sharply against the dollar. Around 11:30 in Paris, the single European currency was worth 1.4147 dollars against 1.4212 dollars late Wednesday. Oil prices were up, however, supported by market expectations of seeing the debt crises lead to solutions.A barrel of "light sweet crude" for delivery in August took 28 cents to 98.68 dollars and that of Brent North Sea crude for September delivery took nine cents to 118.24 dollars.
United States, President Barack Obama received Wednesday several leaders of Congress and the White House has once again expressed confidence in a political solution to the crisis of debt before August 2, to avoid a default. "I expect us to find a solution," the president said in an interview with local TV KMBC Kansas City, renewing his call for compromises from both sides, whether its Democratic allies or his Republican opponents.
Rafale indicators
In addition to the meeting, the markets should observe the indicators that will be published on both sides of the Atlantic.In France, the composite PMI, which includes industry and services, is version 52.8 "flash" from 54.9 in June. "The financial crisis of 2008/2009 aside, the latest survey data suggest lower growth in overall activity since the third Gulf War in 2003," said Jack Kennedy, economist at Markit.
Activity in the private service also slowed against all odds in Germany in July to its lowest in two years, according to preliminary results of the survey Markit. The composite PMI stood at 52.2 in both "flash" against 57.3 in June.
United States, the day will begin with the weekly jobless claims. It will be followed index of home prices in the Federal Housing Finance Agency (FHFA), the index of manufacturing activity Philadeplhie Fed, then the index of leading indicators.
China's manufacturing activity shrank in July for the first time last year, registering its largest decline in 28 months, according to preliminary PMI HSBC published this morning. PMI Purchasing Managers calculated fell to 48.9 against 50.1 in June, the lowest level for this indicator since March 2009. This new atmosphere was sealed on the Asian markets.
Values to follow
Banking
Banks eagerly awaiting the end of the EU summit. Their participation in the rescue of Greece is at the heart of the debates. Moreover, the institutions of the European Union will face fines of up to 10% of their net banking if they do not meet new international requirements for capital and liquidity, said Michel Barnier.
After opening in the green, the area was about-face in the middle of martinée. A mid-term securities of large establishments accuse all of declines. Societe Generale (-1.22% to 35.56 euros), Credit Agricole (-0.67% to 8.85 euros), Natixis (-1.10% to 3.16 euros), and BNP Paribas (-3, 01% to 47.33 euros) are among the largest declines the CAC
EADS: 0.24% to 24.90 euros
Airbus is ready to look "seriously" the increase in the production of single-aisle A320 to carry it beyond the already record a goal, but has not so far committed to this, its president said Wednesday Excecutive.
Eutelsat: 1.20% to 31.16 euros
The Strategic Investment Fund (ISF) on Monday rejected a proposed takeover of Eutelsat joint push by the Spanish Abertis, reported Thursday the newspaper Les Echos.
The benefits of Publicis climb
Plastic Omnium: 6.12% to 24.97 euros
The Group expects a net profit in 2011 "strong growth" after a rise of 26% in the first half to 91.4 million.
Publicis: -2.85% to 36.75 euros
In the first half, the Group generated revenue of 2.7 billion euros in organic growth of 7.1%, exceeding the expectations of analysts whose estimates ranged from 6.2% to 6.5%.
Remy Cointreau: 4.73% to 60.95 euros
The group reported a turnover of 198.6 million euros in the first quarter organic growth of 22.5%.
Unibail-Rodamco: 0.26% to 143.88 euros
The group said it had signed for 1.1 billion euros of asset sales in the first half and accelerated its development plans after reporting an earnings growth supported by its recurring rental income.
Ubisoft: 3.83% to 6.15 euros
The group announced that its sales better than expected first quarter gross margin should support a few days after being heavily penalized by the stock market concerns about future profitability.
Mersen: 3.43% to 40.10 euros
The group released a turnover up 17% in the second quarter, supported by sales in solar activity, which is the group to provide a statement of objectives for the entire year.
APRR: 0.11% to 46.90 euros
The group announced it had recorded a traffic decrease of 0.8% in the second quarter 2011, impacted by the decline in light vehicle traffic.
Cegid: 1.91% to 20.49 euros
The group reported a 32% decline in net profit in the first six months of the year to 4.8 million, despite a 5% increase in sales. The publisher of management software specialist said that last year, accounts for the first half was boosted by a reversal of provision for risk.