Cac 40: Between economic sanctions and nuclear ghosts, the Paris market bends again

(BFM Bourse)-In an impressive amount of business, the Paris market lost about 3% this Monday at noon, squeezed by a new escalation of geopolitical tensions and a new package of sanctions against Russia, a new energy The price has increased the risk of a sharp rise.

In Ukraine (and now looking to Belarus, where negotiations between Russia and Ukraine have begun as I write these lines), investors are seeing the ongoing war and the rather severe west against Moscow. I am trying to measure the economic impact of sanctions. weekend. These are “more stringent and widespread than the most extreme sanctions I could have imagined just a month ago. […] In a morning memo, an analyst at JP Morgan will almost certainly put Russia’s economy in a serious recession. ” ..

At 12:25 pm, CAC 40 erased almost all of Friday’s astonishing rebounds (+ 3.55%), returning 3.02% to 6,548 points, recording a spectacular trading volume of over € 2.2 billion at this stage. ..

In fact, things have changed completely over the weekend. The first sanctions package decided last week has been significantly enhanced. With the full participation of Europe as a dragging Germany, Oanda analyst Jeffrey Halley said, “We allowed the sale of weapons to Ukraine, while significantly increasing our defense budget.” Russian banks have been separated from the SWIFT network, and the European Union, the United Kingdom and the United States have severely frozen the assets of Russia’s central banks, making them unable to intervene in the currency market and the number of Russian savers is skyrocketing. Bank.

“In late February and early March, we can talk about our previous data-rich week and its impact on monetary policy. But who are we making fun of? With Russia? The situation between Ukraine, and the evolution of this situation, determines emotions and market direction, “concludes Jeffrey Halley. Analysts specifically mention the February consumer price index announcement in the euro area, which was released this Wednesday and should decide to implement the ECB’s monetary policy-clearly a question of ongoing armed conflict. In European soil.

In terms of values, the sector fluctuates: the sector fluctuates, especially if the decline is more generalized and affects groups exposed to Russia (-11.4% for Societe Generale, -10.8% for Renault). Germany’s face-to-face defense strategy and the announcement of EU military support for Ukraine have certainly benefited European champions in sectors such as Dassault Airlines (+ 9%) and Thales (+ 12, 1%) in Paris.

TotalEnergies has announced that BP has announced its fullness, despite a new surge in oil prices (+ 4.4% to $ 98.3 per barrel of Brent crude) against the backdrop of Russia’s outlook for supply disruptions. Under pressure, it fell 5.5%. Withdrawal from Russia.

Within the CAC, some growth stocks such as Dassault Systèmes (+ 2.8%) and Eurofins (+ 1.5%) are taking advantage of the prospect that central bank attempts to raise interest rates may be delayed in the future. .. And the rest of the assessments ask for GTT (+ 2.9%) or Neoen (+ 7.8%).

In the foreign exchange market, where the Russian ruble has turned to a historic low, the single currency fell 0.52% to $ 1.1210 at around 12:45 pm.

Quentin Soubranne-© 2022BFMBourse