The Paris Stock Exchange stable to start the week: News

The Paris Stock Exchange was stable in early trading on Monday, at the start of a week where investors will be patient before discovering inflation on Friday, in the shadow of the first round of elections in France.

The flagship CAC 40 index advanced by 0.70 points to 7,629.27 points around 9:30 a.m. despite a fall of more than 15% in Eurofins. On Friday, it ended down 0.56%, after the disappointment in the level of PMI activity indicators for June in the euro zone and in France.

The Parisian rating remains well below its level before the dissolution of the National Assembly.

“Investors are concerned about a single event: the first round of the legislative elections in France” on Sunday, estimates John Plassard, investment specialist for Mirabaud.

The National Rally, with its right-wing allies who followed President Les Républicains Eric Ciotti, would obtain between 35.5 and 36% of the votes, respectively indicate in the Sunday press an Elabe poll for La Tribune and another from the Ipsos institute for Le Parisien and Radio France.

He is ahead of the New Popular Front (27 to 29.5%) and Emmanuel Macron’s camp (19.5 to 20%).

“For the moment, foreign investors are waiting but they are starting to consider two catastrophic scenarios: a grand coalition within which LFI would have significant economic nuisance power or the absence of an absolute majority for the RN which could lead to a resignation of the President of the Republic “All this is obviously very hypothetical”, estimates Christopher Dembik, investment advisor at Picet AM, while Emmanuel Macron ruled out resigning in a letter on Sunday.

Investors’ tension is expressed in particular on debt: on Friday, the gap between the German 10-year rate, the benchmark in Europe, and the French 10-year rate closed at its highest level since 2012. Monday, the The gap narrowed slightly between the two rates.

And if France’s first medium and long-term debt issue on Thursday took place under usual conditions, “let’s not forget that France plans to borrow massively on the markets in July. We will have to quickly reassure” , recalls Mr. Dembik.

American politics will also enter the markets with the first debate between Joe Biden and Donald Trump, the two presidential candidates neck and neck in the polls, on Thursday.

On the economic side, the week is not very busy, like the previous one. The main event on Monday is the business climate in Germany. Thursday, the third and final estimate of American growth in the first quarter is on the program, but the busiest session will be Friday, with measures of inflation in France and Germany for June (CPI), as well as in the United States. United for May (PCE).

Muddy Waters criticizes Eurofins, which falls

The action of the pharmaceutical, food and materials analysis company Eurofins Scientific fell 15.05% to 44.80 euros on Monday, after a press release from the short-selling fund Muddy Waters criticizing the group.

“The confusion” and “the contradictions inherent in its finances and its operations” make the company “optimized for embezzlement” according to Muddy Waters in a press release made public just after the opening of the Paris Stock Exchange.

BNP Paribas loses its throne

The BNP Paribas bank (+0.57% to 59.70 euros) is no longer the leading company in its sector in the euro zone according to market capitalization. BNP Paribas was overtaken by the Spanish Santander with the fall of French banking stocks after the dissolution of the National Assembly.

Safran wants to buy Preligens

The Safran group (+0.25% to 203 euros) has entered into exclusive discussions with a view to acquiring the French SME Preligens, which helps the defense and intelligence sectors interpret satellite images using artificial intelligence. , for 220 million euros, according to a press release published Monday.

Euronext CAC40



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