Cac 40: CAC begins to fall again in response to the intensification of Russian artillery

(BFM Bourse)-Somehow limited Monday’s decline (-1.39%), the flagship index of the Paris market emphasized a fall to almost -3% at noon on Tuesday, but Russia “up to all” attacks in Ukraine “The purpose of claiming to continue” is achieved.

Despite international criticism and painful sanctions that could put Russia’s economy in a serious recession, Moscow clearly has no intention of turning back. Russia faces defense minister Sergey Shoygu as Ukrainian troops face new attacks by Russian troops in Kyiv, Kharkov, and several other cities in the country on Tuesday, the day after the initial negotiations fail. , “All objectives have been achieved”, that is, Ukraine’s “demilitarization” and “demilitarization”.

This new rise in tensions, which occurred after relatively easing, caused a new fall in the European stock market on Tuesday. Around 1 pm, CAC 40 fell 3.18% to 6,446.77 points, the lowest since the beginning of October 2021 after starting a near-balanced day.

Analyst Jeffrey Halley said, “The talks between Ukrainian and Russian officials at the Belarusian border were not decisive on Monday, but they agreed to meet again. In Oanda, especially before sanctions. “The market is likely to have the impression that the worst bad news is now behind us,” he said. “I’m not sure, but the market is always right. We have to respect the momentum from a short-term perspective,” he added. Bruno Le Mer, the French Minister of Economy, who was invited to French information on Tuesday morning, agreed with analysts that sanctions could cause a “collapse of the Russian economy.” “The economic and financial balance of power is in full favor of the European Union in the process of discovering that economic power,” he argued.

“The European index should fall again this morning, despite last-minute lows on Wall Street last night,” said John Prasad, Deputy Chief Investment Officer of Mirabeau. “This trend is clearly Ukraine. It is supported by “news from the front line”. ” .. And in this regard, the latest news is not encouraging. On the sixth day of the Russian invasion, the central square of Kharkov was bombarded and a 60km long Russian armored pillar was approaching Kyiv.

TotalEnergies and Engie in the sight of the French state

Bruno Le Maire was asked about the activities of the French giants TotalEnergies and Engie in Russia, but is still in French information and has a personality close to Russian power “the question of the principle of cooperation”. The Minister of Economy estimated that there was Bruno Le Maire. Engie, part of the Nord Stream 2 gas pipeline program suspended by Germany, plummeted 7.3% at 11:25 am. TotalEnergies is involved in several natural gas projects, especially Novatek (18.9% shareholder) and sells an additional 2.8%.

Due to the balance at the start of the session, the CAC ranking was sharply red as only orange (+ 0.3%), especially Thales (+ 5.6%), resisted the general decline around 11:40 am. It has become. Meanwhile, groups exposed to Russia, especially Renault (-4.8%) and Alstom (-6.3%), were suffering from new escalations.

The entire automotive sector has fallen sharply, but new car sales in France in February have fallen for the ninth straight month (-13.1% in a year) and are still hampered by a shortage of electronic chips. In addition to Renault, Faurecia (-6.2%), Plastic Omnium (-3.7%), Valeo (-4.2%) and even Michelin (-3.2%) were below the benchmark index.

In the rest of the news, Atos again disappointed investors, lower than expected, especially in terms of operating profit, down 13.6% at 11:45 am.

Franco-Austria biotechnology Valneva has also announced that it has received the first approval of an anticovid vaccine from health authorities in Bahrain, which has already pre-ordered a million doses. The title is shining 1.5%.

Robotic equipment suppliers to ceramic and glass manufacturer Cerinnov (+ 6.8%) returned to strong growth in 2021.

Brent barrel over $ 100

Crude oil prices rose again on Tuesday due to the war in Ukraine and sanctions on Russia, the world’s second-largest exporter of black gold. Brent barrels, delivered from the North Sea in May at 11:55 am, are trading at $ 101.6, up 3.7% from the previous day. Meanwhile, the WTI barrel was up 3.1% to $ 98.7.

Ultimately, in the currency market, traders are still looking at the greenback, which has regained its position as a safe haven, so the single currency will fall 0.37% to $ 1.1180. ..

Quentin Soubranne-© 2022BFMBourse