PARIS (Reuters) – The main European stock markets fell at the start of the session on Monday, investors remaining on their guard with the uncertainties linked to monetary policy and the armed rebellion of Wagner.
In Paris, the CAC 40 lost 0.51% to 7,126.98 points around 08:00 GMT. In London, the FTSE 100 lost 0.47% and in Frankfurt, the Dax fell 0.3%.
The EuroStoxx 50 index is down 0.4%, the FTSEurofirst 300 0.43% and the Stoxx 600 0.34%.
After the rate hikes by the British, Swiss and Norwegian central banks last week, not to mention the Federal Reserve Chairman’s hearings in Congress, monetary news will remain in the forefront in the coming days with the opening on Monday of the European Central Bank Annual Forum in Sintra, Portugal.
The big money-makers will be able to take advantage of the occasion to recall that the fight against inflation is not over despite the progress made so far.
The possible fallout from the brief and sudden rebellion of mercenaries from the Wagner Group against Moscow over the weekend is creating uncertainty in the markets, with observers arguing that the episode highlighted the fragility of Vladimir Putin’s regime.
“The armed uprising in Russia…although aborted, exposes the risks of instability in Russia,” Vishnu Varathan told Mizuho Bank. “Risk assets could underperform, especially if geopolitical risks resurface.”
Defense-related values are moving down: Thales, Dassault Aviation, Rheinmetall lose 3.75% to 6.57%.
Casino drops 5.42%. The distributor said it aims to reach an agreement in principle with the main creditors on the restructuring of its debt by the end of July, estimating that this agreement will include a contribution of “at least 900 million euros”. ‘euros’ in equity.
On the rise, SES Imagotag gained 5.60% after rejecting the allegations made against it by Gotham City Research, which notably accuses it of having fraudulently inflated its income.
Aston Martin jumped 9.96% after announcing it would strike a deal with Lucid Group to design “high performance” electric vehicles.
(Laetitia Volga, editing by Kate Entringer)
Copyright © 2023 Thomson Reuters