The concern is still apparent at the Paris Stock Exchange on Wednesday. The CAC 40 ceded 0.72% in early trade at 2850.85 points. Unable to maintain its rebound yesterday, the CAC 40 would be difficult to bounce back following the announcement of a further slowdown in the Chinese economy. Preliminary PMI Manufacturing activity in China, issued by HSBC this morning, recorded in November, its biggest drop since March 2009, to 48 against 51 in October. Below 50, this means a contraction.
The country's dependence on exports is the main cause of this fall, analysts said the bank. China is beginning to feel the impact of the economic downturn of its main European and U.S. clients. To this end, HSBC is lowering the forecast industrial production to 11% or 12% year on year in the months to come (against 13 no fax payday loans.2% in October).The growth of the second world economy is showing disturbing signs of slowing: GDP rose 9.1% in the third quarter against 10.4% in late 2010.
The news depressed Asian investors this morning. These were already suffering from the downward revision of U.S. growth in the third quarter. Wall Street had also cashed a new bearish session yesterday.
Meeting the agenda of the euro area
This accumulation of bad news in addition to the always present fear about sovereign debt problems. France and Germany announced their wish to present proposals on reforming the EU treaties. "With Angela Merkel we will soon make proposals with regard to the Treaty amendment to prevent that countries can differ in the fiscal, economic and tax," said Nicolas Sarkozy.
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