The flagship CAC 40 index dropped 259.62 points to 6,521.05 points, its lowest closing level since the beginning of October 2021. The trading volume was almost twice as high as usual, at €6.9 billion

Vladimir Putin launched an invasion of Ukraine on Thursday, with air strikes and penetration of ground forces including in the direction of the capital Kiev, killing dozens of people in a few hours, according to the Ukrainian authorities.

The latter also recognized in the afternoon that the Russians had conquered a military airport at the gates of Kiev.

The markets have taken note that "a milestone has been crossed", with the start of the offensive, observes Patrice Gautry, chief economist of the Private Banking Union.

“There was always hope for a diplomatic solution”, but now “it is risk aversion” that has seized investors, withdrawing their investments in corporate shares, he continues.

Especially since "we are in the worst of what the markets do not like: uncertainty", both on the evolution of the situation in Ukraine but also around the reaction of Western countries, with the sanctions that will follow the widespread condemnation.

The effects of the crisis were not limited to the equity markets: commodities, notably oil, soared, the barrel of Brent and WTI both exceeding 100 dollars for the first time since 2014, and rising by more than 5% each.

Government bonds, considered safer by investors, were instead sought, which lowered their price: the yield for a 10-year bond from France fell to 0.66%, against 0.73% Wednesday.

Banks and companies present in Russia have suffered

Societe Generale, present in Russia via its subsidiary Rosbank, plunged 12.15% to 27.30 euros.

BNP Paribas (-7.49% to 55.09 euros) and Crédit Agricole (-6.45% to 11.86 euros), were also weighed down, like the entire European sector.

Renault, present through its subsidiary Avtovaz, fell 9.07% to 29.22 euros.

Alstom, which has a 20% stake in railway manufacturer Transmashholding, fell 6.06% to 22.23 euros, also one of the worst performances in the CAC 40.

Widespread losses

Luxury (Kering -4.07% to 620.20 euros), community services (Veolia -6.30% to 29.74 euros) but also energy-related stocks (ArcelorMittal -6.53% to 24.92 euros, TotalEnergies -3.87% to 47.62 euros) or even companies in the technology sector (Capgemini - 1.75% to 182.50 euros): almost all sectors suffered heavy losses.

Defense away from the storm

Defense-related companies, on the contrary, were sought.

Two of the three stocks in the green on the CAC 40 are Thalès (+4.87% to 88.36 euros) as well as Dassault Systèmes (+1.50% to 40.87 euros) while on the expanded Parisian index SBF 120, Dassault Aviation took 4.18% to 119.50 euros.

The last value in the green on the CAC 40 is the Eurofins Scientific analysis laboratory (+0.23% to 85.80 euros).

Results as a lifeline

Other values ​​in the green are those whose annual results have particularly pleased investors, such as the reinsurer Scor (+0.55% to 29.19 euros), or the inspection and certification company Bureau Veritas (+ 1.20% to 24.39 euros).

© 2022 AFP