Europe hesitates with political uncertainties in France – 07/08/2024 at 09:51

Europe hesitates with political uncertainties in France – 07/08/2024 at 09:51
Europe hesitates with political uncertainties in France – 07/08/2024 at 09:51

A trader works at CMC Markets in London

European stock markets are trading on a hesitant note at the opening on Monday, with political uncertainty in France adding to investor caution ahead of a salvo of US indicators this week.

In Paris, the CAC 40 rose 0.22% to 7,692.09 points at 07:35 GMT after opening in the red. It is still down 4% since the announcement on June 9 of the surprise dissolution of the National Assembly.

In Frankfurt, the Dax gained 0.13%, while the FTSE in London lost 0.15%.

The pan-European FTSEurofirst 300 index gained 0.02%, the EuroStoxx 50 gained 0.4% and the Stoxx 600 advanced 0.24%.

The left-wing alliance of the New Popular Front (NFP) came out on top in the second round of legislative elections, but no party won an absolute majority, raising serious uncertainty about the country’s political future and the state of its public finances.

Investors will be on the lookout for future political developments and volatility in French assets could continue.

Within the CAC 40, French banks, which have been hit hard since the announcement of early legislative elections, remain under pressure.

BNP Paribas fell by 0.4%, Société Générale was stable and Crédit Agricole gained 0.6%.

The agenda will also be busy this week across the Atlantic.

On Tuesday and Wednesday, Federal Reserve Chairman Jerome Powell will comment on the central bank’s monetary policy before the U.S. Congress and Senate.

CPI inflation for June will be released on Thursday, while the second-quarter earnings season will begin that same day.

Major US banks are expected to publish their figures on Friday.

(Written by Corentin Chappron, edited by Blandine Hénault)

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