European equity markets have faltered again after the sharp fall on Wall Street and the Tokyo Stock Exchange. The benchmark index in Paris has touched its 2015 session floor.
After losing to 3.6% in the day, touching the low point in August 2015 (4,230 points), the CAC 40 (-1.80% 312.89 PX1-4) was down 1.8% while the German DAX 30 index (-1.5%), the Spanish IBEX 35 (-1.5%) and the Italian FTSE MIB (-1.2%) also lost ground. Fears related to oil, slowdown in China, the impact of monetary tightening from the Fed on the global economy and fourth quarter results weighed on the trend.
Automakers values were particularly attacked, after confirmation of a search at Renault (RNO-€ 77.75 -10.28%) concerning tests on emissions. The action of the diamond manufacturer, dropped to 23% during the session, before reducing its losses, with trade volumes seven times higher than usual. The group sought to reassure investors, pointing out in particular that the General Directorate for Energy and Climate (DGEC) considered that the proceedings would not reveal the presence of a faker software equipping its vehicles.
For its part, the Italian-American competitor Fiat-Chrysler has paid the price of a charge of falsification of its sales in the US reported by the specialist Automotive News site.
The technology fund has also been particularly targeted, the sector that experienced a bloodbath Wednesday in the US, following the deterioration of recommendation from Morgan Stanley and amid fears on valuations. Titles like biotech DBV Technologies (DBV-€ 50.86 -9.24%) and Transgene (TNG–3.93% € 3.18), or the medtech Stentys (STNT-5,08 € -8 47%) and among the largest declines in the Deferred Settlement Service (SRD).
Conversely, oil stocks performed well, with the image of Total (FP-2.59% € 38.83) and Technip (TEC-€ 39.78 0.96%), benefiting from the ongoing rebound Brent.