The CAC 40 index ended below 6,800 points (-3.97% to 6,787.79 points) after falling more than 4% in session, the biggest drop since March 2020.

In Frankfurt, the Dax lost 3.80% to 15,011.13 points.

"The markets fully integrate the possibility of a major crisis as tensions seem to be rising between Russia and Ukraine," observes Daniel Larrouturou, equity manager at Dôm Finance, interviewed by AFP.

“Awareness of the possibility of an invasion of Ukraine by Russia came with the decision of the United States and Great Britain to withdraw” personnel from their embassies in Kiev, he adds .

In the event of a military action in Ukraine which would banish Russia, "the consequences would be very significant for the European economies", estimates the expert, citing a surge in the prices of gas and wheat but also consequences for the automotive, banking and luxury sector.

We are, according to him, "not far from a black swan", in other words an unexpected event which strongly upsets the forecasts and which plunges the markets.

Last week, the market was already weakened by “fears that inflation will end with more restrictive monetary actions, which combined with a decline in purchasing power could lead to a slowdown in the global economy”, recalls Mr. Larrouturou.

Investors expect a series of four key rate hikes from the US central bank this year, but their expectations could be further reassessed in the face of inflationary pressures.

Banks under pressure

Societe Generale fell 5.60% to 31.12 euros, penalized by its presence in Russia.

Its counterparts BNP Paribas and Crédit Agricole respectively fell by 3.75% and 3.18%.

Orpea drags retirement homes down with it

The title of the French group, manager of private clinics and retirement homes, fell by 16.11%, before its listing was suspended, at the request of the company.

The management of Orpea has planned to speak during the day, via a press release, following the publication of a book-investigation denouncing the obsession with profitability within the group to the detriment of living conditions. seniors.

In the process, the Korian title lost 14.04% to 23.76 euros and that of LNA health by 5.26% to 43.20 euros.

Kering separates from two watch brands

The French luxury group Kering announced on Monday that it would sell "its entire stake in Sowind Groupe SA, which owns the Swiss watch manufacturers Girard-Perregaux and Ulysse Nardin, to its current management".

The action dropped 2.98% to 648.90 euros.

© 2022 AFP