PARIS (Reuters) – The main European stock markets fell at the start of the session on Monday after the announcement of new health restrictions in China, which added to fears that tensions in the energy market could favor a recession against a backdrop of inflation and tighter monetary policies.
In Paris, the CAC 40 lost 1.43% to 5,947.10 points around 07:45 GMT, none of the values that compose it escaping the decline. In London, the FTSE 100 lost 0.81% and in Frankfurt, the Dax dropped 1.25%.
The EuroStoxx 50 index is down 1.25%, the FTSEurofirst 300 0.84% and the Stoxx 600 0.93%.
Futures contracts on the main American stock market indices foreshadow a decline on Wall Street two days before the publication of the monthly consumer price figures in the United States and three days before the start of the publication of results in the banking sector. .
In China, the Shanghai SSE Composite index lost 1.27% after the announcement of health restrictions in several cities in the country, the closure of all casinos in Macau and the identification of a new variant of the coronavirus. responsible for COVID-19.
In Europe, the ten-day shutdown of the Nord Stream 1 gas pipeline for maintenance operations raises fears of a prolonged stoppage of Russian gas deliveries with consequences that are difficult to assess on economic activity.
This context favors the drop in oil prices (Brent lost 1.29%) and base metals (-0.98% for copper).
The European commodities sector is the most affected, with a decline of 2.52% for its Stoxx index. In London, the mining giants Anglo American and Rio Tinto lost 4.13% and 1.62% respectively, while in Paris, Eramet lost 3.19% and ArcelorMittal 3.29%.
Luxury stocks, exposed to the Chinese market, are also affected: LVMH fell by 2.7%, Kering by 2.32%.
Among the rare marked increases at the start of the session, EDF gained 2.11% to 9.69 euros after the raising of JPMorgan’s recommendation to “overweight” with a price target of 12 euros, linked to the group’s renationalization project.
(Written by Marc Angrand)
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