BNP Paribas Shares Drop 4% in a Week, Middle East Concerns Persist
BNP Paribas ended the week on a negative note, falling 2.38% to 82.48 euros this Friday. The stock has now declined 3.87% over the past seven days amid high nervousness on European markets. The CAC 40 itself dropped 1.40% during the session, to 7,698 points.
Widespread Correction in the European Financial Sector
The significant decline of BNP Paribas is part of a broader correction movement in the European financial sector. AXA lost 1.30% and ING Groep was down 1.26% in the same session, reflecting a widespread distrust towards banking and insurance stocks. The surge in oil prices — with Brent crude surpassing $107 this Friday, up 50% since the end of February — fuels fears of a resurgence in inflation that could weigh on economic growth. The price of TTF gas has almost doubled over the same period, a direct consequence of the ongoing conflict in the Middle East. For banks, such an energy shock poses the risk of a slowdown in credit activity and a deterioration in asset quality if the European economy were to weaken. The VIX, a volatility indicator, was at 25.09 points on March 18, up more than 12% from the previous day, confirming a high level of tension in the markets. The upcoming deadlines for BNP Paribas will be closely monitored: the first quarter results are expected on April 30, 2026, followed by the general meeting scheduled for May 12.
Technical Weaknesses in BNP Paribas Stock
Technically, BNP Paribas stock shows several signs of weakness. The price has broken through the support level at 84.49 euros, corresponding to the previous day's closing level, and is now close to the lower Bollinger band (81.04 euros). This downward breach reflects an acceleration of selling pressure. The RSI (Relative Strength Index), which measures the momentum of the stock, is at 30, a level conventionally associated with an oversold zone. This indicates that the stock has undergone significant and rapid sales, although this does not automatically signal an imminent rebound. Moreover, the price is trading well below its 20-day (89.60 euros) and 50-day (89.65 euros) moving averages, with a gap of about 8% from the MM50. Only the 200-day moving average, at 79.48 euros, is still below the current price, providing a longer-term support reference. Over three months, the stock's performance remains positive at +2.33%, which moderates the recent decline in a broader perspective.
