Cac 40: Shockwaves continue to spread throughout the market, but CAC still loses nearly 4%

(BFM Bourse)-The determination by the Russian government to continue the attack in Ukraine despite sanctions by the international community led to a new large-scale sale on Tuesday. Tricolor’s CAC 40 fell 3.94%, slightly missing the biggest drop of the year at this stage.

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, through Defense Minister Sergey Shoygu, said, as Ukrainian troops face new attacks by Russian troops in Kyiv, Kharkov, and several other cities in the country the day after fruitless talks. We will continue to attack everyone. ” The purpose has been achieved “, that is, Ukraine’s” demilitarization “and” demilitarization “in Moscow terms. This new escalation, accompanied by indiscriminate strikes, further increased civilian casualties and caused a new decline in the European stock market.

The Paris Stock Exchange closed at 6,396.49 points, down 3.94% after a balanced day. Not the biggest drop in 2022, but the worst performance so far was the 3.97% drop that occurred on January 24, when investors began to worry about the possibility of Russia’s military intervention in Ukraine. , This move is pretty close. “, As warned, American intelligence.

The meeting between Ukrainian and Russian officials at the Belarusian border on Monday was inconclusive, but they agreed to meet again. It was enough for the market to open and try to recover, but hope soon diminished as hostility continued.

Western sanctions, which are clearly much stricter and quicker than the Vladimir Putin administration expects, and are shared even by resolutely neutral countries such as Switzerland, have isolated the country’s economy and Russia has partnered with it. Request to release the relationship-this also comes at a price for the West.

TotalEnergies and Engie in the sight of the French state

When asked about the activities of French giants TotalEnergies and Engie in Russia, Economy Minister Bruno Le Maire confirmed that there was a “problem of the principle of cooperation” with someone close to Russian power. Bruno Le Maire estimated by the Minister of Economy. Engie, part of the Nord Stream 2 gas pipeline program suspended by Germany, plummeted 7.3% at 11:25 am. TotalEnergies lost another 2%, despite several natural gas projects, especially with Novatek (18.9% shareholder), where oil prices continued to rise. Engie plummeted by more than 13%, and the minister also showed that it was a matter of discussing contributions to the Nord Stream 2 project.

After balancing at the start of the session, CAC’s prize list suddenly turned red. Among the few stocks on the rise, Thales rose another 5.1%, followed by ArcelorMittal (+ 2.4%) and teleperformance (+ 0.2%). On the other hand, the groups most exposed to Russia are suffering again. In addition to Engie and TotalEnergies, Renault, which closed its Moscow plant this week, fell 11% and Societe Generale fell 9.4%.

Widely used in the aviation industry, investors have also sanctioned the aviation sector (Saffron-9.6%, Airbus-9.3%) for fear of the effects of a shortage of titanium, Russia’s main producer.

The entire automotive sector also suffered a further downturn in February with a new car registration that recorded a nine-month consecutive decline in France (-13.1% in a year), but was still hampered by a shortage of electronic chips. rice field. In addition to Renault, Faurecia (-13.6%), Plastic Omnium (-6.9%), Valeo (-8.8%) remember to sink Stellantis (-7%) and Michelin (-4%) on Tuesday. Did.

In the rest of the news, Atos again disappointed investors, losing 20%, with lower-than-expected results, especially in terms of operating profit.

Valneva and Serinnov among the few survivors of the session

Franco-Austria biotechnology Valneva was able to win 2.1% after getting the first approval of an anticovid vaccine from health authorities in Bahrain, which has already pre-ordered a million doses. I did.

Cerinnov, a supplier of robotic equipment to ceramic and glass manufacturers, was recognized as returning to solid growth in 2021 after a tragic journey since the IPO, regaining 5%.

Barrel over $ 110

Crude oil prices, suspended by the war in Ukraine and sanctions on Russia, the world’s second-largest exporter of black gold, ignited further on Tuesday. US Crude (WTI) futures contracts rose 11% to $ 106.32 and Brent reached $ 107.19 (+ 9.41%).

In the currency market, the single currency fell by more than 1% to $ 1.1104, as traders turned to greenbacks, good and safe shelters over and over again.

Among other assets, ounces of gold soared to $ 1937.10 (+ 1.92%) and Bitcoin soared 4.56% to $ 43,548.

Guillaume Bayre-© 2022BFMBourse