The Paris Stock Exchange ended sharply up 1.03% on Monday, trying to make up for the losses which followed the surprise dissolution of the National Assembly, in a landscape where political developments still remain at the forefront.
The flagship CAC 40 index gained 78.32 points to 7,706.89 points. Last week, the CAC 40 advanced by 1.67%, without managing to compensate for its fall of more than 6% the week following the announcement of the dissolution of the National Assembly decided by Emmanuel Macron on the evening of the elections. European.
“Banking stocks are those that allow the index to rebound. This is the segment that has suffered the most from political announcements,” commented Alexandre Baradez, chief analyst at IG France.
BNP Paribas advanced 3.27% to 61.27 euros, Société Générale 2.06% to 22.56 euros and Crédit Agricole 2.00% to 13.29 euros.
“Rates have also tightened and this is likely to support equities,” he added.
On the bond market, the gap between the German rate and the French rate, which illustrates investor confidence in France, stabilized after experiencing its closing peak since 2012 on Friday.
The French 10-year rate, the benchmark maturity, fell slightly to 3.18% compared to 3.21% at the close on Friday. The German rate is 2.42% compared to 2.41%.
Investors’ attention remains focused on political developments in France as the first round of legislative elections approaches, but several events will also be monitored.
Investors will also be closely watching the debate ahead of the legislative elections in the United Kingdom, as well as that between the two main candidates in the American presidential election on Thursday.
Furthermore, “there will be some statements from members of the European Central Bank this week, but we do not expect this to change the point of view on the European macroeconomy. On the American side, there will be at the end of the week inflation figures with the publication of the PCE index”, detailed Alexandre Baradez.
Muddy Waters entraîne Eurofins
Shares in pharmaceutical, food and materials analysis company Eurofins Scientific fell 16.15% to 44.22 euros, after a press release from 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.
Euronext CAC40
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