The Paris Stock Exchange fell 1.88% in early trading, the day after the European elections and the announcement of the dissolution of the National Assembly by Emmanuel Macron, factors of uncertainty for the markets.
The banking sector is the most penalized by this context of uncertainties: Société Générale falls by 5.19% to 24.66 euros, BNP Paribas by 4.82% to 63.12 euros and Crédit agricole by 3.69% to 14 ,10 euros. Next come companies whose income depends on concession contracts signed with the State: Eiffage fell by 5.76% to 93.90 euros and Vinci by 3.88% to 106.45 euros. The Paris airport manager ADP also fell 4.29% to 122.60 euros.
The shock wave is also felt on the bond market: the interest rate at which the French State borrows on the markets with a ten-year repayment deadline rose to 3.16% around 9:25 a.m., compared to 3.10 % at Friday’s close. It widens the gap compared to the German equivalent.
The euro is also affected by the result of the European elections and lost 0.41% against the dollar to 1.0757 dollars per euro at 9:25 a.m.
The other European stock exchanges also fell in the first exchanges, but less sharply: Frankfurt lost 0.68%, Milan 0.80%, Brussels 0.91%, Amsterdam 0.42% and Stockholm 0.68%. Overall, the pan-European Stoxx 600 index fell by 0.65% around 9:05 a.m.
The European elections were marked by a surge in the far right in several countries, but without upsetting the major balances in Brussels.
