(BFM Bourse) – The Paris Stock Exchange opened sharply lower on Monday, with Russia’s decision not to restart gas supplies via Nord Stream 1 generating strong risk aversion. The euro, meanwhile, is unscrewing.
The Paris Stock Exchange starts the week badly. The CAC 40 opened down 2.1% to 6,039.16 points on Monday, erasing much of the gains recorded in Friday’s session.
The wind of panic on all European markets is caused by the announcement, Friday evening, by Gazprom that the Nord Stream 1 gas pipeline would remain closed.
The Russian energy company, which cited an oil leak affecting the operation of a turbine, “provided no date for the resumption of flows to Germany, accentuating fears of energy shortages and economic recession in Europe this winter”, summarizes John Plassard, director and investment specialist at Mirabaud.
This reason given by Gazprom does not convince the German turbine manufacturer Siemens Energy, which considers that such a leak does not in itself constitute a technical reason justifying a cessation of operations.
Towards restrictions and rationing?
As a result, gas prices are on the rise again. The October contract on the Dutch TTF is thus awarded 22% to 262 euros per megawatt hour.
“Europe has done a very good job over the past two months, compared to expectations, in maintaining high levels of gas storage and increasing imports” from countries other than Russia, Deutsche strategists stress. Bank. “But if Russia no longer supplies gas, it is likely that we will not be able to get through the winter without noticeable restrictions and rationing,” they add.
European markets will not be able to count on Wall Street to possibly improve the trend, the New York Stock Exchange being closed on Monday due to a public holiday.
The market will also watch during the session the OPEC + meeting, which brings together members of the organization of petroleum exporting countries and their allies, in the early afternoon. In view of the recent plunge in the price of black gold, it is possible that the members of the cartel decide to maintain their production quotas, or even reduce them.
On the currency market, worries about gas – which also reinforce fears of a recession in Europe – are unscrewing the currency of the euro zone. The euro lost 0.5% to 0.9902 dollars, and had fallen below 0.99 dollars in the early morning.
Julien Marion – ©2022 BFM Bourse