The Paris Stock Exchange is moving in positive territory on Wednesday, a few hours before the vote on the motion of censure promised by the left and the far right, which could bring down the Barnier government.
The flagship index of the Paris Stock Exchange, the CAC 40, gained 0.39% around 9:40 a.m., or 28.55 points to settle at 7,283.97 points.
On Tuesday, it gained 0.26%, despite political uncertainties. “A +technical rebound+”, estimated John Plassard, investment specialist for Mirabaud, “investors seeming to have already anticipated the fall of the Barnier government”.
Prime Minister Michel Barnier was forced on Monday to take responsibility for the Social Security budget, a first 49.3 synonymous with a motion of censure and probably a fall, since the left and the extreme right announced that they would vote for it in unison.
The conference of group presidents in the Assembly has set for 4:00 p.m. the examination of the motions of censure tabled. By joining their voices, the left and the National Rally can gather around 330 votes, well beyond the 288 required to bring down the government.
Thus, “barring any last minute surprises, the motion of censure should be voted on. This is already integrated into the prices of financial assets”, also underlines Christopher Dembik, investment strategy advisor at Pictet AM.
“It is likely that the underperformance of the CAC 40 will persist over the first months of 2025, as will a significant difference in +spread+ (sovereign rates) compared to Germany. However, we are very far from a crisis scenario financial”, adds Mr. Dembik.
Since the dissolution of the National Assembly, announced by surprise in June by French President Emmanuel Macron, the CAC 40 has erased the gains it had accumulated since January 1 and remains largely behind its European peers.
Where the CAC 40 is down around 3.5%, the flagship German index, the Dax, has increased by more than 20% since the start of the year.
On the bond market, the yield on French bonds over ten years reached 2.92% compared to 2.90% the day before at closing. Its German equivalent was at 2.07%, compared to 2.05% on Tuesday.
Pierre et Vacances “confident”
Pierre et Vacances-Center Parcs jumped more than 7% to 1.40 euros after presenting a positive 2023-2024 net profit for “the first time in 13 years”, at 27.5 million euros, and saying ” confident” for the future.
Euronext CAC40
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