The Paris Stock Exchange at its lowest since March 2021

The flagship CAC 40 index lost 159.69 points to 5,794.96 points, its lowest closing level since the beginning of March 2021. Since the start of the year, the Parisian rating has lost nearly 20%, due to monetary tightening central banks and the economic consequences of the war in Ukraine.

“The whole of Europe is worried”, assures Alexandre Baradez, analyst of IG France.

The sharp rise in gas prices is of particular concern to investors.

In just one week, the benchmark contract for natural gas in Europe has climbed 27% and stood at 164 euros per megawatt hour on Tuesday.

“We find levels of stress on the gas market that we had not seen since the beginning of March”, at the time of the Russian invasion of Ukraine, notes Alexandre Baradez.

Since the beginning of the year, it has soared by almost 140%, whereas it was trading well below 100 euros per megawatt hour before the Russian invasion of Ukraine at the end of February.

Another reason for concern, the growth of economic activity in the euro zone slowed sharply in June in the private sector, at its lowest for 16 months, according to the composite PMI index of S&P Global.

Main consequences of the strengthening of these recessionary fears: oil prices fell by almost 10% and the euro was trading at a level very close to parity with the dollar and at its lowest level since the end of 2002, in the first days of the European single currency, when the unknowns were still multiple for the new currency.

Many sectors were penalized on the stock market, starting with raw materials: TotalEnergies lost 6.42% to 49.07 euros, Maurel & Prom 6.18% to 4.10 euros, ArcelorMittal 4.31% to 20.89 euros and Eramet 8.72% to 87.90 euros.

Cacophonous first steps for Deezer on the Paris Stock Exchange

The French platform Deezer collapsed by 29.41% to 6 euros, for its first steps on the Paris Stock Exchange, a second bad experience after its first failed attempt in 2015.

The title has suffered a violent catch-up from the fall of companies listed on the stock market for several months, such as its Swedish competitor Spotify, which has lost 60% since the start of the year.

© 2022 AFP