CAC 40: After the first round of legislative elections, the Paris Stock Exchange rose by 1% this Monday

CAC 40: After the first round of legislative elections, the Paris Stock Exchange rose by 1% this Monday
CAC 40: After the first round of legislative elections, the Paris Stock Exchange rose by 1% this Monday

(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 ended higher after the results of the first round of the legislative elections. The CAC 40 had opened sharply higher by around 2.6% before seeing its rebound lose strength during the session. The index gained 1.09% to 7,561.13 points to start the month of July. Let us recall that following the dissolution of the National Assembly by Emmanuel Macron on June 9, the CAC 40 had 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 at 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 that had been most penalized by the dissolution are rebounding. This is the case for banks: BNP Paribas gained 3.6%, Société Générale rose 3.10%, after having lost 20% over the last three weeks. Crédit Agricole SA gained 2.9%. As did motorway concessionaires. Vinci gained 2.6% and Eiffage 3.3%. Or again the audiovisual groups, TF1 rose 5.2% and M6 4.1%.

Dassault Systèmes is suffering the biggest drop in the CAC 40 this evening (-2.3%). The company announced on Monday a partnership with the French artificial intelligence specialist Mistral AI.

Outside the leading index, Valneva limited its gains to 2.2% as 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 the exchange rate, the euro is almost stable against the dollar at 1.0725 dollars. Oil is rising slightly, the September contract on North Sea Brent is rebounding by 1.6% to 86.36 dollars per barrel, while the August contract on WTI listed in New York is gaining 1.7% to 82.93 dollars per barrel.

Sabrina Sadgui – ©2024 BFM Bourse

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