The Paris Bourse is expected to open sharply lower on Monday, after the new sanctions against Russia which raise fears of a surge in energy prices.
The futures contract for the star CAC 40 index fell by 2.48% around forty minutes before the opening of the session. The Paris market had been heavily heckled at the end of last week after the start of the Russian invasion of Ukraine, losing nearly 4% on Thursday before recovering 3.5% the next day, bringing its weekly losses to 2.56%.
There will be a significant amount of pent-up stress and uncertainty at the open, after a weekend of significant developments on the ground and sanctions, anticipates Markets.com analyst Neil Wilson.
The Russian offensive on Ukraine, which resists fiercely, continues Monday after the nuclear threat brandished by Vladimir Putin, which the Europeans have responded by promising to provide Kiev with weapons.
Westerners have taken heavy new financial sanctions against Moscow: in particular the decision to exclude many Russian banks from the Swift interbank platform, an essential cog in global finance.
These measures have been taken by the United States, France, Germany, Great Britain, Canada, Italy and the European Commission.
According to the European Union, about 70% of the Russian banking sector is currently affected by the sanctions.
The access of the Russian central bank to the capital markets has also been restricted, as the President of the European Commission wishes to paralyze its assets. As a direct consequence, the ruble fell by more than 20% at 07:45.
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Another consequence of the sanctions, oil prices jumped by more than 5%, due to fears that companies will not be able to pay for Russian oil and gas, which could well prompt Putin to cut off supplies, says Michael Hewson, CMC Markets analyst.
Banks: after the sanctions pronounced by the West, the banks could be the most abused sector on Monday, in particular Socit Generale, present in Russia via its subsidiary Rosbank.