The Paris Stock Exchange fell sharply on Friday, weighed down by banks again under pressure in the face of investor fears.
The star CAC 40 index lost 1.13%, or 80.52 points to 7,057.78 points around 10:10 a.m. Thursday, the Parisian coast grabbed 0.11%. Over the week, it shows an increase of 3% at this stage.
The fear of a contagion in the banking sector has not yet disappeared, notes Neil Wilson, an analyst at Finalto, who points to the sharp decline in European bank stocks on Friday, which is weighing on general market sentiment.
The takeover of Credit Suisse by its competitor UBS, also Swiss, was supposed to signal the end of the crisis of confidence in the second Swiss bank according to the country’s central bank and its announcement had indeed enabled a sharp rebound in stock market indices and values. European banks.
Societe Generale down by 4.48%
But Friday the actions of European banks were again among the worst performances observed on the European markets.
Socit Generale fell 4.48% to 20.24 euros, the biggest drop in the CAC 40, BNP Paribas lost 3.36% to 51.49 euros and Crédit Agricole 2.23% to 9.93 euros.
In terms of indicators, French economic activity experienced sustained growth in March, driven exclusively by services, according to the provisional PMI index published on Friday by the S&P Global agency.
The French economy, the second largest in the Eurozone, is showing remarkable resilience in the face of rising interest rates and high inflation, with the latest PMI data indeed suggesting French GDP growth in the first quarter of 2023 , commented Joe Hayes, economist at S&P Global, quoted in a press release.
Invest in the Scholarship at the best price ! 7 offers compared
Activity in the euro zone also accelerated in March and is at its highest level for 10 months.
Casino and Rally at a discount
Like Friday, the shares of Casino (-5.37% 6.35 euros) and Rallye (-13.65% 1.63 euros) are down sharply on Friday. Rallye, the heavily indebted parent company of the distributor in financial difficulties Casino, has indicated that it is approaching its creditors to arrange, if possible, its backup plan providing for significant repayments in the years to come.
Furthermore, the rating agency Moody’s has downgraded Casino’s rating to B3 Caa1, which means that it anticipates a high risk of default on the part of Casino. To justify its decision, Moody’s highlights the decline in Casino’s market share in France, coupled with high inflation, which will weigh on the group’s margins.
BNP Paribas, Socit Gnrale Crédit Agricole… Our banks are falling on the stock market, should we be worried?
Reproduction forbidden.