Stock market: CAC 40 cautious, Deutsche Bank issues France warning

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The Paris Stock Exchange is in a slight decline on Wednesday, June 19, 2024 after two days of growth. Investors remain attentive to the French political context, on which Deutsche Bank is showing some caution. The CAC 40 is far from returning to the level before the European elections.

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– The Paris Stock Exchange falls on the first exchanges on Wednesday, June 19, 2024.

PUSH Paris Stock Exchange was down 0.16% in early trading Wednesday, after two days that allowed it to recover a bit from last week’s losses, and closed Wall Street flat during the session. Star trail The CAC 40 fell by 12.53 points to 7,616.27 points around 9:15 a.m. Tuesday, it gained 0.76%, its second session of growth in a row. But the Paris star index is far from returning to the level before the European elections, above 8,000 points. The day will take place in the absence of Wall Street, closed for a public holiday the day after the session without much change, but where the Nasdaq and the S&P 500 once again set records.

The session was marked by the coronation of Nvidia (+3.51%), which has overtaken Microsoft and Apple in the world ranking of companies with the largest weight on the stock market. Investors also don’t have many indicators to analyze. The main event of the day was UK inflation slowing to 2% year-on-year in May, meeting the Bank of England’s target. The number is in line with analysts’ expectations. In addition, the European Commission must open the way for excessive deficit procedures against around ten EU countries, including France, on Wednesday. “Today’s announcement will not be a surprise if it happens, but in the case of France, the move risks complicating post-election governance.”Deutsche Bank analysts underline.

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Concerns about the trajectory of France’s public deficit should be put into perspective

Apart from Deutsche Bank’s caution over political uncertainties in France in the bond market, the interest rate on the benchmark 10-year French loan remained steady at around 3.16%. The spread against the German equivalent (2.37%), which shows investor confidence, was little changed since the start of the week after reaching its highest level in more than a decade. “Investors, especially foreign investors, believe that the next government, whoever it will be, will have little room to maneuver in the budget and will therefore be forced to draw the line at the most expensive economic measures.”estimates Christopher Dembik, investment advisor at Pictet AM.

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Société Générale is losing weight

Banking group Societe Generale announced on Wednesday “exclusive contract” with the Danish group Ageras to sell him his subsidiary gloss, a neobank specializing in banking services for self-employed people and small businesses. Societe Generale got its hands on Shine in 2020, without disclosing the amount at the time, the press mentioned at the time a figure of 100 million euros. The stock advanced 0.11% to 22.45 euros, underperforming two other CAC 40 banks Crédit Agricole (+0.34% to 13.09 euros) and BNP Paribas (+0.24% to 59.60 euros).

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