Stock market: CAC 40 attempts recovery, despite uncertainty over French political future

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After a week at half-mast, European stock markets confirmed their improvement at the start of the week on Tuesday, June 18, 2024. The Paris Stock Exchange (CAC 40) gained 0.3%, despite uncertainty over France’s political future.

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– Paris Stock Exchange.

European stock markets rose for a second session in a row on Tuesday, following a tough week for investors following doubts over French politics. After Monday’s rise of 0.91% the Paris stock exchange strengthened by 0.32 percent in the first exchanges. Frankfurt was up 0.51% at 0730 GMT, Milan 0.94%, London 0.46%. Investors continue to focus on the political situation in France with the campaign for Parlament elections with an uncertain result. In the bond market, the spread between French and German rates narrowed slightly (2.43% for the German rate versus 3.18% for the French rate) after widening significantly last week.

After European electionsThe 27 are continuing negotiations with the aim of a formal agreement at the end of June on key positions of the European Union, after the first round of discussions on Monday, at the end of which Ursula von der Leyen remained the favorite of the European Union. “top job” in the European Commission. In Asia, the Tokyo Stock Exchange (+1.00%) recovered after Monday’s ordeal. Shanghai gained 0.48%, while Hong Kong lost 0.07% in late trade. Asian indices were also supported by the trend on Wall Street, where the S&P 500 and Nasdaq also set a final record at the end of the session this year with a sharp increase.

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Some investors are abandoning the CAC 40 and European stocks in favor of Wall Street

“Slow recovery and political unrest in Europe, war in Ukraine and geopolitical tensions with China help attract investment funds to US markets thanks to new opportunities in artificial intelligence – and high interest rates” Swissquote analyst Ipek Ozkardeskaya claims this. Investors can focus all the more on political uncertainties, as the markets’ agenda is otherwise completely blank.

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On Tuesday, the final estimate of May inflation in the Eurozone, the business climate in Germany for June and retail sales and industrial production in the United States are on the agenda. The Reserve Bank of Australia decided to leave its key interest rate unchanged at its highest level in 12 years, a decision in line with market expectations. However, the central bank has not ruled out anything for its next decisions, including a further increase in key rates.

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Toyota President re-elected to AGM

Akio Toyodachairman of Toyota (+0.52%) was re-elected on Tuesday during the world’s number one car company’s annual general meeting, despite the growing importance of scandals over irregular certification of the group’s vehicles in Japan. from the end of 2023. These issues exposed deep flaws in the group’s management with insufficient internal controls, increasing pressure on frontline Akio Toyoda on the issue.

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Two major international AGM proxy advisory agencies, Glass Lewis and Institutional Shareholder Services (ISS), recommended that shareholders vote against his re-election. Mr. Toyoda’s popularity will be known on Wednesday.

The Carrefour model has been questioned

Action of the French distributor Crossroads, red lantern CAC 40, fell 8% on Tuesday, to its lowest level in three years, after a press release about a large fine demanded by the economy ministry over the group’s links to franchise stores. The group disputed Bercy’s conclusions to AFP.

The oil settles

In other markets prices oil he gave up part of the land acquired the previous day. A barrel of Brent crude fell by 0.2%. $84.16 around 09:15 GMT and US WTI down 0.26% at $80.12. The euro was steady (-0.02%) at $1.0732 per euro. Bitcoin fell 1.22% to $65,560.

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