CAC 40 weighed down by the ECB and the uncertainty of legislative elections

© Chabe01/Wikimedia

– Stock exchange of Paris.

The Paris Stock Exchange opened lower on Monday as uncertainty weighs ahead of the final list of candidates for the second round of the French legislative elections, with investors also awaiting inflation data from the eurozone. Around 9:30 a.m., the CAC 40, the Paris stock market’s flagship index, was down 0,91%or 65.39 points to 7 495,74 pointsOn Monday, the leading index advanced by 1.09%, or 81.73 points, to 7,561.13 points. It is still far from compensating for the losses of June (-6.42%), its worst performance in two years.

The market is still focused on the outcome of the legislative elections, while the list of final candidates for the second round will be known on Tuesday evening.Other parties are trying to prevent the National Rally from gaining power, and negotiations are underway for candidates to withdraw from constituencies where they want to give another party a better chance of victory.”explain Deutsche Bank analysts.

Avoiding a debt slippage, a crucial issue for rates and the CAC 40

“Once we know who is running, we should have a better idea of ​​the prospects before the vote.” of July 7, they continued. At this stage, according to AFP findings, more than 150 candidates have withdrawn from more than 300 triangular races initially planned for the first round. For the French President, the game looks set to be very tight after July 7, whether he enters into head-to-head cohabitation with the RN or composes with a minority and technical government, the two most likely scenarios.

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“Investors are mainly hoping for a minority government scenario, which would at least prevent (Marine) Le Pen’s party from increasing France’s debt.”comments Ipek Ozkardeskaya, analyst at Swissquote Bank.This would help to control the gap between French and German bonds,” which is an indicator that measures investor confidence in France, and “to support the euro”the analyst continued.

Eurozone unemployment figures

On the bond market, the rate of the French 10-year loan was at 3.35% around 9:30 a.m., compared to 2.58% for the German rate. On the currency side, the single European currency lost 0.22% against the greenback, at 1.0716 dollars for one euro. On the agenda for the session, investors will turn to the publication of unemployment figures for the euro zone in June while “Inflation figures published since Friday in the main countries of the Eurozone are mixed”commented Ipek Ozkardeskaya.

In addition, the President of the European Central Bank (ECB), Christine Lagarde, left “to hear that there would probably be no second rate cut at its monetary policy meeting in July”during his opening speech at the ECB’s annual forum in Sintra, Portugal, the analyst said.

Sodexo sanctioned

The collective catering and services group Sodexo saw its turnover growth slow slightly with inflation, but confirmed its annual objectives thanks in particular to a “robust” development in catering services. Sanctioned, its share price dropped nearly 5% to 81.70 euros.

Cora goes to Carrefour

The retail giant Carrefour (-0.60% to 13.32 euros) announced on Monday evening that it was officially buying the Cora stores from the Belgian group Louis Delhaize, which will switch to the Carrefour brand, as well as the Match stores, which will keep theirs.

Renault makes it cheaper

The automotive group will equip some of its electric cars with LFP batteries, a technology that is cheaper than the usual NMC batteries, the group’s electric subsidiary, Ampere, announced on Monday after the stock market closed. Renault advanced 0.39% to 48.44 euros.

Casino sells stores

The distributor Casino (-0.66% at 3.47 euros) announced on Tuesday the sale of 66 large format stores to the Les Mousquetaires group and to Auchan Retail France, in accordance with an agreement which had already led the heavily indebted group to sell more than 200 hypermarkets and supermarkets to its competitors in the spring.