BNP Paribas Shares Drop 4.5% at Midday, Weighed Down by Tensions in Iran
BNP Paribas stock sees a sharp decline this Tuesday, March 3, dropping 4.5% to 87.94 euros by midday in a European market shaken by geopolitical tensions in the Middle East. Over the week, the stock has lost more than 8%, erasing some of the gains accumulated in recent months. Nevertheless, the French bank is still up more than 17% over three months.
Market Environment Impact
BNP Paribas is suffering this Tuesday from a deteriorated market environment, with European stock markets falling by 1 to 3% due to military operations in Iran and their repercussions on energy markets. The surge in oil prices, with Brent reaching $80.14 a barrel, and a nearly 25% increase in European natural gas prices are fueling fears of a sustained increase in energy costs. For a leading financial institution, this type of exogenous shock weighs both through a possible deterioration of the economic situation and the uncertainty it generates on growth prospects. The rerouting around the Strait of Hormuz by major global shippers heightens the risk of disruption in supply chains and could affect the industrial and commercial counterparts of the group. BNP Paribas is set to publish its first-quarter results on April 30, a deadline that could provide more visibility on the real impact of this new episode of international tensions.
Technical Analysis
From a technical standpoint, the BNP Paribas stock price is now very close to its 50-day moving average, positioned at 88.09 euros. The ongoing breach below this level represents a short-term technical vulnerability, especially since the stock has been below its 20-day moving average (93.25 euros) for several sessions. The RSI, at 47, is in a neutral zone, indicating the absence of overselling but also the erosion of the bullish momentum that prevailed in recent weeks. The support identified at 85.76 euros represents the next threshold likely to provide support if the selling pressure were to continue. Over a broader horizon, the 200-day moving average, established at 78.86 euros, remains well below the current price, preserving the underlying positive trend. The general assembly scheduled for May 12 will complete the financial calendar for the group this spring.
