(News Bulletin 247) – With the renewed tension in the banking sector, the Parisian index has relapsed. This poor session limited the gains of the CAC 40 over the whole week.

After four sessions of consecutive increases, the CAC 40 came to a sudden halt on Friday, with renewed tension on the banks. The Parisian index ended down 1.74% at 7,015.10 points, narrowly preserving the 7,000 points. Over the week as a whole, it nevertheless rose by 1.3%.

Investors again sold shares of European banks, in particular Deutsche Bank which lost 8.5% and even fell more than 13% during the session.

As reported by several press agencies, the German institution has faced a sharp increase in its CDS (Credit Default Swaps), hedging instruments against default risk. .

“We sell first and we will ask questions later”

“There was no single event or development that could be identified as the cause of the significant changes in Deutsche Bank’s CDS,” said Naeem Aslam of Zaye Capital.

“Before Credit Suisse, [Deutsche Bank] is the example of the establishment which has been heavily restructured, but successfully. They generated 6 billion euros in profits last year and are on the same trend this year. Deutsche Bank is caught up in its recent past but the fundamentals are there, so the crisis should pass,” said David Benamou, chief investment officer at Axiom AI.

“We sell first and we’ll ask questions later,” said Quincy Krosby of LPL Financial, quoted by AFP. “Investors don’t want to wake up on Sunday to find that Deutsche Bank’s situation has deteriorated, Credit Suisse style,” he added.

Casino continues its stock market torment

Obviously, the French banks have not escaped the movement of fear. Societe Generale lost 6%, BNP Paribas 5.3%.

The Heads of State and Government, who were meeting on the occasion of a European Summit in Brussels, took the floor to try to reassure the market. The President of the Republic, Emmanuel Macron, notably affirmed that the euro zone was the region where the banks were the most solid due to the very demanding prudential standards.

On values ​​other than banks, Casino tumbled 16% after having already lost 9% the day before. The distribution group suffered from a downgrading of its credit rating by Moody’s agency by one notch to “Caa1” against “B3” previously.

On other markets, the euro fell 0.7% against the dollar, to 1.0759 dollars, the greenback benefiting from its status as a safe haven. Oil pulls back a bit. The contract on Brent from the North Sea for May lost 1.9% to 74.10 dollars a barrel while that of the same term on WTI listed in New York lost 1.8% to 68.75 dollars a barrel.