(BFM Bourse) – The leading Parisian index started the month of July on the rise, the day after the results of the first round of the legislative elections. The CAC 40 gained 1.09% to 7,561.13 points on Monday evening.
The Paris Stock Exchange ends up, after the results of the first round of the legislative elections. The CAC 40 opened sharply up by around 2.6% before seeing its rebound lose strength during the session. The index rose 1.09% to 7,561.13 points to start the month of July. Remember that following the dissolution of the National Assembly by Emmanuel Macron on June 9, the CAC 40 lost 6.5% in the 3 weeks that followed, cumulatively.
The Parisian market welcomes the results of the first round with relative relief. The outcome of this first ballot, before the second round next Sunday, supports the probability of a National Assembly without an absolute majority, and therefore of a political deadlock. This is interpreted as the “least bad” of the most plausible scenarios by the market.
A National Assembly without a majority could be “the best scenario for the market”, write economists from the Swiss bank J.Safra Sarasin. But investors remain on their guard before the outcome of the second round of the legislative elections.
“The results of the first round mask a huge uncertainty about the final composition of the French Parliament. The number of three-way races is exceptionally high, which makes it very difficult to predict the outcome: traditionally, the leader of the first round wins a large part of the constituencies in the second round, but this time, it is not so obvious,” judge the economists of Lombard Odier.
The rebound of massacred values
On the value side, the sectors which had been most penalized by the dissolution are rebounding. This is the case for banks: BNP Paribas gained 3.6%, Société Générale increased by 3.10%, after having lost 20% over the last three weeks. Crédit Agricole SA took 2.9%. As do highway concessionaires. Vinci gained 2.6% and Eiffage 3.3%. Or even the audiovisual groups, TF1 grew by 5.2% and M6 by 4.1%.
Dassault Systèmes shows the biggest drop in the CAC 40 this evening (-2.3%). The company announced this Monday a partnership with the French artificial intelligence specialist Mistral AI.
Excluding the flagship index, Valneva limited its gains to 2.2% while the European Union gave the green light to the marketing of the French company’s anti-chikungunya vaccine.
Air France-KLM, on the other hand, returned 1.6% after warning of pressure on its unit revenues linked to the 2024 Olympic Games. This impact was estimated at between 160 million and 180 million euros over the period from July to August. .
On foreign exchange, the euro is almost stable against the dollar at 1.0725 dollars. Oil rises a little, the September contract on North Sea Brent rebounds by 1.6% to 86.36 dollars per barrel, while that of August on WTI listed in New York gains 1.7% to 82.93 dollars per barrel.
Sabrina Sadgui – ©2024 BFM Bourse
