![The Palais Brongniart, the former Paris Stock Exchange](https://s.brsimg.com/static-000/cache/i/content/images/b/7/7/b77099841c17af45e2448e60b79536c9-760x507.jpg)
The Palais Brongniart, the former Paris Stock Exchange
The main European stock markets were down on Monday morning in the absence of Wall Street and before the publication of indices of business activity in Europe, while political risk weighs in Germany after a historic victory of the extreme right in a regional election.
In Paris, the CAC 40 lost 0.52% to 7,591.59 points at around 07:40 GMT. In London, the FTSE 100 fell by 0.21% and in Frankfurt, the Dax lost 0.43%.
The EuroStoxx 50 index also fell by 0.43%, while the FTSEurofirst 300 lost 0.48% and the Stoxx 600 lost 0.44%.
Financial markets are closed in New York for a holiday after closing in the green on Friday, limiting trading volumes in Europe.
The historic victory of the far right in Thuringia in the regional elections in Germany a year before the federal legislative elections is fueling uncertainty in Europe’s largest economy. In France, the second largest economy in the eurozone, Emmanuel Macron is struggling to get the country out of the impasse in which it has been plunged despite the multiplication of consultations with a view to appointing a head of government.
As for today’s indicators, before the publication at 08:00 GMT of the final figures for manufacturing PMIs in the eurozone, investors are hoping that the trend observed in the first estimate will be confirmed. The preliminary survey had shown that growth in private sector activity in the eurozone had shown surprising strength in August, despite price increases, without however calling into question the prospect of a rate cut.
The European Central Bank (ECB) is due to meet on September 12 and the market is anticipating a further reduction in the cost of borrowing after the first cut in borrowing costs agreed in the currency bloc in June. The yield on the 10-year German Bund, however, is up 3.3 basis points to 2.323%, Joseph Capurso, chief economist at CBA, noting that the trajectory of rates in the eurozone remains uncertain beyond the September deadline.
In individual stocks, Sanofi gained 2.74% despite the announcement of the clinical failure of its most advanced drug candidate against multiple sclerosis (MS), which did not meet its primary objective. Jefferies notes, however, that the clinical results are in line with their base case scenario.
Atos, which revised downwards its financial forecasts for 2024-2027, fell by 2.31%.
Elsewhere in Europe, Danish group DSV is down 0.83% after committing to invest €1 billion if it wins the bidding war for Deutsche Bahn’s Schenker logistics subsidiary against a consortium led by CVC Capital Partners (-1.25%), sources said.
In terms of sectors, apart from energy (+0.06%), all the major compartments of the Stoxx 600 are in the red, with the biggest drop being for the cyclical consumption index (-1.17%).
(Written by Claude Chendjou, edited by Kate Entringer)