PixelBiss – stock.adobe.com
The CAC 40 particularly scrutinized the political debates in France this Monday to take a direction. Michel Barnier's recourse to article 49 paragraph 3 of the Constitution almost pushed the Parisian star index into the red, but it managed to finish stable.
The market trend
The Paris Stock Exchange managed to close in the green with a rise in the last minutes. The French stock markets spent Monday's session following the political negotiations of the day (read below). Down in the morning, everything changed with the Prime Minister's refusal to reimburse certain medications. The French indices regained hope and crossed the balance to sail into the green.
However, the markets will return to the red with Michel Barnier's recourse to article 49 paragraph 3 of the Constitution. This announcement also weakens the Paris Stock Exchange which fears political and budgetary instability. Despite everything, luxury values (Hermès and LVMH) allowed the CAC 40 to return above balance at the last minute. In this context, the euro still fell by 0.86% against the dollar.
For its part, the Dax 40 broke a new record on the Frankfurt Stock Exchange with 19,933.62 points. The German index is driven by the Chinese economy while the country is going through an economic crisis.
On the index side in France and around the world
| CAC 40 | + 0,02% | 7 236,89 points |
| SBF 120 | – 0,13% | 5 479,04 points |
| DAX | + 1,57% | 19 933,62 points |
| FTSE 100 | + 0,31% | 8 308,37 points |
| Nikkei | + 0,80% | 38 513,02 points |
| Dow Jones* | – 0,29% | 44 781,17 points |
| Nasdaq* | + 0,89% | 19 388,93 points |
| *index stopped at the close of European stock markets | ||
Fact of the day
This Monday, the Paris Stock Exchange was weighed down by political negotiations in the National Assembly. Indeed, Prime Minister Michel Barnier held his government accountable by using article 49 paragraph 3 of the Constitution for the Social Security financing bill. This article allows the text to be adopted without a vote, but also exposes the government to a motion of censure. The Insoumis and the National Rally announced that they would each table a motion.
Michel Barnier had offered himself a reprieve with a final concession to the National Rally by renouncing the reimbursement of medicines, but that was not enough. A few hours later, the Prime Minister preferred to use article 49 paragraph 3 of the Constitution. Without a majority in the National Assembly, the adoption of a motion of censure is feared by the financial markets, particularly in the banking sector. These values are sensitive to budgetary uncertainties since investors are more cautious.
Values in view
The Top
Worldline pranced at the top of the SBF 120 during the entire session, but the title soared around 3 p.m. thanks to a rumor. Reuters announced that the French group would attract interest from private equity companies. This information therefore allowed the main payment provider in Europe to gain 14.04% on the Paris Stock Exchange.
Weakened in recent months by warnings about its results, Worldline would be of particular interest to Bain Capital, which could submit a buyout offer. According to British news agency sources, discussions have already taken place. The main point to be resolved is Bain Capital's 10% stake in Nexi, Worldline's Italian competitor, and what future for this investment.
Le Flop
The sentence finally fell on the side of Stellar . This Sunday, the automobile group announced the resignation of its general director Carlos Tavares. This announcement was felt on the stock market since the stock recorded the biggest drop in the CAC 40 with a fall of 6.37%. The future of Carlos Tavares was already on hold last October, the board of directors had announced his departure for the beginning of 2026. The Franco-Italian-American manufacturer finally made the decision to part ways before highlighting “different points of view” to explain this departure.
During his career, Carlos Tavares managed to turn around the PSA group (Peugeot Citroën) before leading the merger with Fiat-Chrysler. Above all, it allowed Stellantis to become one of the world leaders. Despite everything, the group with 14 brands is experiencing a complicated transition this year with sales at half-mast in the United States and Europe. To try to emerge from the crisis, Stellantis indicated that the new general director should be announced “during the first half of 2025”.
Quote of the day
“We will certainly discuss [d’une baisse de 0,50 point]but it should be borne in mind that the uncertainty is still very high. We are still in a situation where there are still many geopolitical risks. We do not know how the United States will implement the tariff increases, so we must remain cautious. »
Martins Kazaks, member of the Governing Council of the European Central Bank (ECB), told Delfi TV on Monday that he did not rule out a 50 basis point cut in key rates. The ECB will meet on December 12, but 80% of observers anticipate a cut of 25 basis points.
The agenda for Tuesday, December 3
The schedule for Tuesday's session looks quite light on paper. Without major macroeconomic events, we will have to turn to companies. Compagnie des Alpes is expected to unveil its annual results for the 2023/2024 financial year while Edenred organizes its investor day.
Editorial recommendations
Assytem surprised investors with the lowering of annual targets after many strong quarters. The R&D company specializing in nuclear power saw momentum slow down due to lower-than-expected development in France and the postponement of projects in Saudi Arabia. Find advice on Assytem shares.
Wavestone is having a slightly uncertain 2024/2025 financial year since the consulting firm indicates that its objectives may not be achieved without, however, lowering them. Investors remain extremely cautious about negative signals from management. Find advice on Wavestone shares.
Related News :