The Paris Bourse sinks below the 4,000 point – Les Echos

Not surprisingly, after the fall of Asian markets (Nikkei plunged 5.4% on Tuesday morning), the Paris Stock Exchange came Tuesday test the symbolic 4,000 points. And the threshold was crossed briskly in early afternoon. Shortly after 13:30, the CAC 40 lost 1.69% to 3997.54 points with its decline to nearly 15% since the beginning of the year. He had already lost 3.2% yesterday. the Paris Stock Exchange is at its lowest since mid-December 2014. In other European markets, shares are hardly better off. Frankfurt lost 1.11% of its side, London 0.88%, Milan 3.21%.

For once the oil has nothing to do, Brent crude was close to balance around $ 33. However, the situation of banks begin to seriously worry investors. The Stoxx Europe 600 Banks index continued to plunge. After losing 5.59% on Monday and 6.21% last week, it sold 5%, especially in the wake of Greek banks. Eurobank fall include 12.11%, Alpha Bank 11.6%. But Swiss banks are also abused, Credit Suisse and UBS losing 8.38% 5.64 Group. In Paris, Credit Agricole makes 4.54%, 4.38% Societe Generale and BNP Paribas 3.56%.

Concern about debt

The markets are worried about their exposure to petroleum and para-petroleum sectors in difficulty, but also their debt. Sign of investor wariness, the cost of protection against default in the sector (measured by the CDS market, so insurance market) reached its highest level since late 2013. “There are fears that the banking sector lacks capital and credit conditions are not optimal, “said Lorne Baring B Capital Wealth Management.

Furthermore, the market punishes the rebound the euro against the dollar. The single currency’s rise above $ 1.12, which is not good news for the competitiveness of European companies. “This new episode of psychosis has indeed led to a serious drop in the dollar against other currencies,” admits David Ganozzi Fidelity result, “ hypochondria investor has now brought the stock index to more low thresholds beyond which they reflect a state far from the economic recession reality, “says the manager .

Risk Factors

For, beyond the banks to Tangi The Liboux at Aurel BGC, the list factors that weigh on the markets in recent weeks is as long as his arm: “spacing of sovereign spreads, banks fall, fear of bankruptcies in the US oil industry, rising euro, Brexit, political context in southern Europe, crisis of migrants / refugees threat Schengen and therefore the European project fall of Chinese foreign exchange reserves, oil that fails to rebound sustainably beyond $ 30 per barrel, etc. “.

Difficult in this context, for an investor to take the risk of investing opposite feeling as negative market. “If the growth forecasts in Europe are not changed at the margin now, investors sell in mass actions and seek safe havens, as shown by the rise of the euro, gold and lower yields sovereigns in Germany or France, “says Tangi The Liboux. Japan faces the same problem: a dating yen and bond rates fall

Currently, there is only one value up on. CAC 40 in Paris: Nokia + 1.22%. In contrast, cyclical stocks fall in a context of concern about global growth: LafargeHolcim plunged 4.71%, 5% and Technip of Saint-Gobain of 2.29%. Energy stocks were also battered mainly because of setbacks Italian Saipem: CGG plunges 17.54%, 12.41% and Vallourec TWG 7.34%.