European stock markets have closed disastrously on Monday evening. France’s CAC 40 lost 4 % while facing the spectre of the Greek sovereign debt and threats on the financial companies. Insurance companies have not been spared.
Fears of a default on Greece and a contamination of Italy continue to hover over the European markets. Monday, French CAC 40 lost 4 % to 2854 points, sunk by banking values. Moody’s has indeed threatened to downgrade some French Banks.
Societe Generale has reached its lowest in 20 years during the exchange and closed at -10.8%. The bank plans to free as much as EUR4 billion in asset sales and cost cutting which will include headcount reduction by 2013. Other banks such as BNP Parisbas and Credit Agricole have also tumbled more than 10 %.
Insurance companies have not been spared by this downfall. Axa lost 9.7 % at 8.484 EUR, Scor lost 5 % at 14.915 EUR and CNP Assurances dropped 6.24 % o 10.21 EUR.
