PARIS (Reuters) – The main European stock markets are moving down sharply on Monday at the start of the session in a general climate of concern about the situation in Ukraine.
In Paris, the CAC 40 lost 3.35% to 6,776.85 points around 08:53 GMT. In London, the FTSE 100 lost 1.93% and in Frankfurt, the Dax fell 3.62%.
The EuroStoxx 50 index is down 3.39%, the FTSEurofirst 300 2.6% and the Stoxx 600 2.76%.
Despite diplomatic efforts, the situation remains extremely tense between Western powers and Russia around Ukraine and fears of a Russian invasion grew further over the weekend.
In addition to the sharp fall in the equity markets, these geopolitical tensions are also reflected in a sharp decline in bond yields in Europe and a surge in crude oil prices, which are reaching highs of more than seven years.
As a result, the European banking sector lost 4.44% while the oil and gas sector limited its decline to 1.91%.
In Paris, Societe Generale plunged 6.71% and BNP Paribas 5.47%.
The most cyclical sectors are also neglected: that of transport and tourism lost 4.37%, with a plunge of 7.97% for Air France-KLM.
For its part, the Swiss chemical group Clariant collapsed by 15.13% after the announcement of the postponement of the publication of its accounts for 2021 due to an investigation launched after allegations concerning manipulation of the accounts in 2020 and 2021.
Beyond geopolitical tensions, investors are also worried about a faster and more marked tightening than expected of the Federal Reserve (Fed) monetary policy after the inflation figures in the United States which showed a increase of 7.5% over one year in January, unheard of since February 1982.
The prospect of a closed meeting of the Fed’s Monetary Policy Committee (FOMC) on Monday (4:30 p.m. GMT) has fueled speculation of an emergency rate hike – outside the schedule of scheduled FOMC meetings – even though the event seems usual.
In Europe, market operators will be attentive to the speech (4:15 p.m. GMT) by the President of the European Central Bank, Christine Lagarde, before the European Parliament.
(Report Blandine Hénault, edited by)
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