Paris (awp/afp) – The Paris Stock Exchange is expected to fall at the opening on Tuesday, still focused on the political crisis in France where the fall of the government this week seems inevitable.
Futures contracts on the CAC 40 fell by 0.15%, around forty minutes before the start of the session. The day before, the star index stood still, gaining only 1.78 points, at the end of a seesaw session.
“All eyes are obviously on the French government following the announcement of a motion of censure from the opposition,” explains John Plassard, investment specialist for Mirabaud.
Prime Minister Michel Barnier triggered article 49.3 on Monday to have the Social Security financing bill (PLFSS) adopted without a vote, leading to the announced filing of a motion of censure by the France Insoumise party.
The National Rally (RN) group in the Assembly, led by Marine Le Pen, has indicated that it will table its own motion of censure, and that its deputies will vote on all the motions, including that of the left.
In this uncertain context, the yield on ten-year French government bonds stood at 2.91%, stable compared to the day before, after a surge on Monday, in the first exchanges of the bond session.
The gap with its German equivalent, a European benchmark, called “spread”, was 0.88 points. A true barometer of investor confidence in France, this “spread” saw a sharp increase of 0.08 points on Monday.
“In the coming days (…) tension should remain palpable on the French bond market and have repercussions on stocks,” warns Christopher Dembik, investment specialist at Pictet AM.
Even if “the possibility of a stock market panic is fanciful,” he tempers.
Among the values to follow
Saint-Gobain: The materials giant announced on Monday its strengthening in the building insulation market in Turkey, via the acquisition of the rock wool producer His Yalitim, and the opening of a factory specializing in chemicals construction, a priority area of the group.
Forvia: The automotive supplier will replace its general director Patrick Koller with Martin Fischer, former member of the executive committee of the German automobile supplier ZF.
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