The Paris Stock Exchange is losing ground and underperforming the other European markets. Investors are wondering about the consequences of a tightening of Western sanctions against Russia expected Wednesday. This prospect supports oil prices by fueling fears of shortages and a new surge in inflation. The barrel of Brent from the North Sea rose by 1.2% to 108.63 dollars, without however benefiting TotalEnergiesdown 1.3%, which weighs on the flagship index.
The prospect of the first round of the presidential election also weighs on the market while according to the latest OpinionWay – Kéa Partners poll for Les Echos and Radio Classique, the candidate of the National Rally Marine Le Pen gains 1 point, to 23% of the intentions to vote. The day before, she had already won two points. At the same time, Emmanuel Macron loses a point. He is now credited with 27% of voting intentions. This, in particular, increases the yield of the 10-year OAT rate to more than 1.10%.
Mid-session, the Bedroom 40 fell by 1.58% to 6,625.26 points in a business volume of 1.15 billion euros. In Frankfurt, the Dax yields 0.641%, while the FTSE Eb Milanese bends by 0.51%. June futures on US indices fell around 0.2%.
Towards new sanctions against Moscow
The United States and the European Union are preparing to adopt new sanctions against Moscow in response to accusations of massacres in the town of Boutcha, northwest of kyiv, taken over by Ukrainian forces. The US Treasury has suspended payments of the Russian government’s dollar debt with US banks. A decision intended in particular to force Moscow to draw on its own dollar reserves.
President Zelensky is due to speak to the UN Security Council on Tuesday. This Council meeting should focus on the war crimes accusations made by Ukraine against the Russian army. Moscow, which denies being responsible for these massacres, has announced that it will present evidence to the Security Council that the Russian army is not involved.
The European Union is working on a new sanctions package against Russia, including restrictions on imports and exports of steel, kerosene, luxury items, CNBC reports, citing two sources familiar with the discussions. Aircraft leasing would also be affected. However, the 27 remain divided on the extension of sanctions to imports of energy products. Emmanuel Macron called for a halt to Russian oil and coal imports without targeting gas.
Societe Generale sells more than 6%.
Banking stocks fell sharply, with the associated European Stoxx 600 index posting the biggest sectoral decline (-1.2%) as the 27 also reportedly consider blocking all transactions with VTB Bank and three other Russian banks already excluded from the Swift system . BNP Paribas loses 4%, Agricultural credit 4.4% and, above all, Societe Generale 6.1%.
The prospect of sanctions also weighs on Airbus (-3.5%) and ArcelorMittal (-3.3%).
Among other cyclical values, Saint Gobain decrease of 1.7%, Renault by 3.7% and Faurecia by 5.3%.
Conversely, Thales takes another 2.5%.