CAC 40: Paris stock market in bright red, worst week in two years ahead

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Weighed down by investor mistrust in French stocks amid a political crisis, the Paris stock market (CAC 40) fell 1.4% around 10:30 a.m. on Friday, June 14. The rate difference between France and Germany has widened significantly.

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– Paris Stock Exchange.

The Paris stock market fell 1.4% this Friday morning burdened by investor distrust in French stocks in the context of the political crisis. The main CAC 40 index fell by 99.39 points to 7,605.44 points around 10 a.m. On Thursday, the index experienced its worst decline in almost a year (-1.99%) and fell to 7708.02 points, the lowest value since February 14. The CAC 40 at this stage is down 4.88% since the start of the week and the surprise announcement of the dissolution of the National Assembly following the victory of the far-right National Assembly party in the European elections. He is facing his worst week since June 2022.

Around 10:00 a.m., the French government’s ten-year borrowing rate eased slightly to 3.12% but further away from the equivalent of the German sovereign, which is considered Europe’s safest debt. This gap – or “spread” – is an indicator measuring investor confidence in a given country. It is currently at 0.71 percentage points, the most since 2017 and its biggest weekly gain since 2020.

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Public finances worry the stock market

According to the first polls, the proportion of French who say yes “confidence” for Emmanuel Macron is the lowest since his second term began in 2022. And both the far-right party and the left-wing alliance could garner more votes than a presidential majority in early parliamentary elections. “Although there are no economic programs that have been presented in detail by political groups, the possibility that the reins of the country could be taken by parties often representing the extremes and without experience of government. causes concern»points out Sebastian Paris Horvitz, director of research at asset manager LBP AM.

“This raises questions, all the more so in the context that France should embark on the path of cleaning up its public finances.”, he adds. Economy and Finance Minister Bruno Le Maire confirmed that the program proposed by the Left Union “The New Popular Front” East “assurance of withdrawal from the European Union» by his rejection “European Discipline” budgetary.

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Atos in the service of the state

Among the indicators of the day, price growth in France reached in May 2.3% in one year, or 0.1 points more than in April, indicated Friday’s INSEE, which revised its preliminary estimate for the month up by 0.1 points. The state has offered 700 million euros to buy Atos’ activities considered strategic and sensitive, including supercomputers used for nuclear deterrence, the heavily indebted French IT group said in a press release on Friday.

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After a 22% jump in early trading, Atos shares were up 13.57% at 87 eurocents by 10am. Shares are still down more than 24% since the start of the week and the announcement that Atos’ board voted down a takeover bid from a consortium led by Onepoint, its major shareholder.

Also read: Stock market: Renault fully recovering but Stellantis in trouble, what to do?

The pan-European operator of the Euronext exchange announced on Thursday that the distributor (stable 3.56 euros) a Esso (-2.79% to 174 euros), a subsidiary of the oil and gas giant ExxonMobil, will be included in the extended index of the Paris stock exchange SBF 120 from June 24. They replace the subcontractor for telecommunications and energy operators Solutions 30 (-7.42% to 1 .62 euros) and the Belgian semiconductor manufacturer X-Fab (-1.36% to 6.53 euros), who left the index at the end of the quarterly evaluation.

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