The flagship CAC 40 index lost 1.13%, or 80.52 points to 7,057.78 points around 10:10. On Thursday, the Parisian rating grabbed 0.11%. Over the week it shows at this stage an increase of 3%.

"The fear of contagion" in the banking sector "has not yet disappeared," notes Neil Wilson, analyst at Finalto, who points to the sharp decline in European bank shares on Friday, which "weighs on the general sentiment" of the market.

The takeover of Credit Suisse by its competitor UBS, also Swiss, was supposed to sound the end of the crisis of confidence in the second Swiss bank according to the country's central bank and its announcement had indeed allowed a sharp rebound in stock market indices and European banking stocks.

But on Friday, shares of European banks were again among the worst performers seen on European markets.

Societe Generale fell 4.48% to 20.24 euros, the largest decline in the CAC 40, BNP Paribas lost 3.36% to 51.49 euros and Credit Agricole 2.23% to 9.93 euros.

In terms of indicators, French economic activity experienced "sustained growth" in March, driven exclusively by services, according to the provisional PMI published Friday by the S&P Global agency.

"The French economy, the second largest in the euro zone, is showing remarkable resilience in the face of rising interest rates and high inflation, with the latest PMI data suggesting French GDP growth in the first quarter of 2023," Joe Hayes, an economist at S&P Global, said in a statement.

Eurozone activity also accelerated in March and is at a 10-month high.

Casino and Rally at a discount

As on Friday, the shares of Casino (-5.37% to 6.35 euros) and Rallye (-13.65% to 1.63 euros) are down sharply on Friday. Rallye, the heavily indebted parent company of the financially troubled distributor Casino, said it was "getting closer to its creditors" to adjust if possible its backup plan providing for significant repayments in the years to come.

In addition, the rating agency Moody's has downgraded Casino's rating from B3 to Caa1, which means that it anticipates a high risk of default on the part of Casino. To justify its decision, Moody's highlights the decline in Casino's market share in France, coupled with high inflation, which will weigh on the group's margins.

© 2023 AFP