Share prices on the Paris Stock Exchange took a nose dive Monday, losing over 3.0 percent on renewed concerns about European debt and US deficit problems.
Warnings about the fragility of the French economy by a reputable rating agency also helped drive shares lower, when Moody’s said France risked losing its Triple-A ranking if debt, spending and growth did not improve.
The CAC 40 index of “Blue Chip” issues closed the session 3.41 percent off at 2,894.94 points. The CAC 40 has lost over six percent in one week, and over eight percent in a volatile month. The key index is also a massive 28 percent down over the past six months.
Traders at “Boursorama” brokerage said that the market was “weak” in the early session and was further “destabilized” by the sharp drop in Wall Street at the open Monday afternoon.
Volumes were relatively restrained, however, as operators and investors hesitated about taking positions.
Trades Monday were valued at about USD 3.5 billion, which is moderate by comparison with normal levels at this period.
The Euro was stable at 1.3513, slightly up on earlier spot levels.