The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange was again weighed down on Friday by fears about the banking sector, characterized by the plunge in Deutsche Bank shares despite the authorities’ efforts to calm things down.
The Parisian rating lost 1.74% or 124.15 points to 7,015.10 points. However, it ends the week up 1.30% and has gained more than 8% since the start of the year.
Four words to describe the climate of excitement that reigns in the markets which were shaken this month by the collapse of several American regional banks and the setbacks of Credit Suisse: “people are afraid”, notes Céline Weill-Alliel, manager of Uzès Gestion, interviewed by AFP.
“The banking world is hyper-scrutinized” and “people tend to have less confidence”, adds the specialist.
After Credit Suisse, the first German Deutsche Bank has in turn been roughed up, becoming the new target of concern for the solidity of the European banking sector.
The action closed down 8.53% to 8.54 euros, after having plunged up to 14% during the day, chaining a third session of decline in a row on the Frankfurt Stock Exchange.
Chancellor Olaf Scholz wanted to reassure Friday, however, saying that there is “no need to worry” for Deutsche Bank, during a speech after a European summit in Brussels.
Many European banks also closed lower, causing the area’s stock markets to plunge.
“The flight of deposits from American regional banks continues to fuel uncertainty about all banking stocks,” agrees Paulina Roszkowska, finance researcher at Bayes Business School.
The takeover of Credit Suisse by its competitor UBS had nevertheless allowed a sharp rebound in stock market indices and European banking stocks in the first part of the week.
Societe Generale fell 6.13% to 19.90 euros, the biggest drop in the CAC 40, BNP Paribas dropped 5.27% to 50.47 euros and Crédit Agricole 2.06% to 9.94 euros.
© 2023 AFP
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