The Paris Stock Exchange plunged nearly 5% in response to Russia’s attack on Ukraine
CAC 40 fell sharply on Wednesday noon, along with all the world’s stock markets, after Vladimir Putin ordered a major military operation targeting the whole of Ukraine. After opening more than 4%, the barometer of the tricolor market suddenly backtracked after reducing losses first because traders bought cheaply. At around 12:15 pm, the index fell 4.96% to 6,444 points, the lowest since September 2021. At the same time, the Dax 30 fell 4.7% in Frankfurt, while the UK’s FTSE 100 “restricted” the decline at this stage to -3.1% and the Swiss SMI to -3%. Martial law was declared in Ukraine for reports of artillery and missile fires shortly before dawn near major cities in the country, including the capital Kiev. In a television speech, Russian President Vladimir Putin justified the operation by the need to protect civilians in eastern Ukraine by demilitarizing Ukraine. The United States, which had warned for weeks that the Kremlin leaders were willing to take action, accused the provocative and unjustified attacks. Therefore, the scenario that appears to be beginning goes far beyond the limited annexation scenario of the eastern separatist region. Wall. As quoted by the Street Journal, Slava Smolyaninov, strategist at BCS Global Markets, a Russian investment bank, said: “This is a complete change. We are in another world now.” The most licensed of the major global markets is the Russian Stock Exchange, which has a 30% Moex index (ruble denominated). As mentioned above, the RTS index (dollar) has fallen by nearly 35%. The fall of Renault, Societe Generale and Alstom In the Paris market, the values most exposed to Russia were logically the most severely sanctioned. Renault, the leader of the Russian car market through its subsidiary AvtoVAZ, lost 9.6% at around 12:25 pm, and Rosbank’s shareholder Societe Generale lost 11%, the largest drop in the flagship index. Alstom decreased by 6.3 as part of it. This decline affects the overwhelming majority of titles, as only Thales is floating in the CAC at noon (+ 1.8%) and is exposed to the defense sector. At the same register, Dassault Aviation (not included in the flagship index) also remains slightly green (+ 0.4%). If the $ 100 or more oil Kremlin war triggers a stock market collapse, oil prices will skyrocket on the back of concerns over the supply of Russia, the world’s second-largest oil exporter. Correspondingly, Brent and WTI barrel prices crossed the $ 100 threshold for the first time since 2014 this morning, and the European benchmark traded at $ 101.06 shortly after 12:30 pm, up 7.3% from the previous day. .. ActivTrades analyst Ricardo Evangelista warns that “when a full military assault begins and we see the most feared scenarios, oil supply shortages will worsen and prices are expected to rise further.” .. This new price hike is benefiting some oil services stocks in the tricolor market, especially Schlumberger (+ 4.7%) or Morrell and Prom (+ 2.5%). Several groups also announced their annual results on Wednesday night after the stock market. Unlike Fnac Darty analysts, Ipsos analysts especially regret a slightly lower operating margin than expected in the second half. In the foreign exchange sector, the Russian ruble fell to a historic low against the dollar this morning, recovering nearly 1.3% against the single currency ($ 1.1163) at around 12:40 pm. In the first full-scale test, Bitcoin fell nearly 6% to $ 35,000, inconsistent with the theory that it would be a safe haven. Unlike the 1 ounce of gold (euro), which peaked in the morning, it is 1765 euros.