France’s CAC 40 index has recovered from its lows reached at the beginning of March 2022, but the risk of another decline still persists, especially if the Ukraine crisis worsens.
The impact of the Russian-Ukrainian war and the rising risks of the recession continue to worry investors, and for now, we can not see the light at the end of the tunnel.
Russian forces bombarded the outskirts of Kyiv and a besieged city in northern Ukraine a day after promising to scale down operations. Russian policymakers said nothing is promising in negotiations, adding that there’s still much to do to reach a breakthrough.
Russian President Vladimir Putin is threatening to halt contracts supplying Europe with a third of its gas unless they are paid in roubles, and the EU economy could soon be faced with one of the largest energy supply shocks ever.
In an effort to reduce the EU’s dependence on Russian energy, the US agreed to increase liquid natural gas (LNG) exports to the EU by 15 billion cubic meters in the 2022 year.
The war between Ukraine and Russia continues to cause supply chain issues for many companies that look to find other sources for their parts. Raw materials and commodities prices have surged since the invasion, intensifying already-high inflation.
European Central Bank members believe that inflation is likely to continue higher than predicted for longer, and according to a flash estimate published by Eurostat, annual inflation in the euro area is expected to reach 7.5% in March, up from 5.9% in February.
As for the whole of Europe, rising inflation is a threat to the French economy, but French Finance Minister Bruno Le Maire said that the French economy is
