Paris bourse braces for heavy losses – 09/05/2022 at 08:24

The Paris inventory trade opened sharply decrease on Monday, after an entire shutdown of the Nord Stream 1 fuel pipeline by Russian firm Gazprom on Friday despatched a chill by means of traders.

Futures contracts for the STAR CAC 40 index fell 2.8% about forty minutes earlier than the beginning of the session. The decline was sharper because the index rose 2.21% on Friday within the wake of the month-to-month US employment report.

But final week the Paris ranking fell by 1.70%. After a inexperienced summer time, fueled by hopes of a extra accommodative pivot in central financial institution coverage, markets returned to the gloom as these establishments reaffirmed their willpower to combat inflation.

The development is identical in Frankfurt, whereas London appears to be headed for a much less marked decline (-1.18%). The euro additionally fell under $0.99 for the primary time in twenty years, falling to $0.9878 by 0602 GMT.

Among the constructive factors for traders final week, fuel costs fell sharply, falling by greater than a 3rd to finish at 210 euros per megawatt hour within the benchmark market, the Dutch TTF.

It reached a historic excessive of 345 euros per megawatt hour on August 26. At the start of the yr, it was round 70 euros.

But fuel market tendencies ought to all of a sudden reverse following the choice by Russian big Gazprom to “fully” shut down the Nord Stream fuel pipeline, which resumed service on Saturday following upkeep.

The Russian firm has introduced ahead the restore of a turbine on this important pipeline to ship fuel to Europeans, a trigger that turbine producer Siemens Energy has deemed unreasonable, from a technical perspective.

“The determination comes as a shock, shortly after the G7 international locations agreed to impose a value cap on Russian oil presumably above the price of Russian manufacturing,” wrote Ipek Ozkardeskaya, an analyst at Swisscote.

On Friday, Wall Street, which had risen sharply forward of the announcement, abruptly circled and ended within the purple, with all three main indexes shedding greater than 1%.

Also, traders await the conclusion of Monday’s assembly of OPEC+ international locations, 13 members of the Organization of the Petroleum Exporting Countries (OPEC) led by Saudi Arabia, and ten of their companions led by Russia. They needs to be content material with a modest enhance of their manufacturing targets, with some consultants even calling for a minimize to assist costs which have fallen in latest weeks.

Among the values ​​to be adopted

Sanofi/Societe Generale: Pharmaceutical group Sanofi introduced in a press launch on Monday that it’s going to suggest the appointment as non-govt chairman of the board of Societe Generale’s present CEO Frédéric Oudier, who is ready to go away workplace in May 2023. .

Vivendi: Culture Minister Rima Abdul Malak has requested the Vivendi-controlled Canal+ group to revive broadcasts of the TF1 channel to its TNT Sat providing, which permits DTT channels to be acquired in areas with poor terrestrial protection.

ArcelorMittal: The world’s second-largest steelmaker ArcelorMittal has determined to shut two of its blast furnaces in Europe, in Bremen (northwest Germany) and Asturias (northern Spain), as a result of falling demand and rising power costs.



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