France’s main stock index ended Monday’s volatile session unchanged, with investors avoiding big bets and pondering the outlook for the country’s political future, with the three-month-old government on the verge of collapse.
France’s benchmark CAC-40 ended almost unchanged, having fallen more than 1% earlier after far-right and left-wing parties, including Marine Le Pen’s Rassemblement National, said that they would have voted in favor of a no motion. trust in Prime Minister Michel Barnier.
The move was made after Barnier said he would try to push a social security bill through Parliament without a vote, as a last-minute concession to pass the 2025 budget in a deeply divided Parliament. Barnier’s budget sought to implement more austere measures to reduce the country’s growing fiscal spending.
“Government instability is really not good news for anyone. It definitely adds risk to the market environment and we’re seeing that the CAC-40 is actually among the most unstable in the world this year,” said Steve Sosnick, Chief Market Analyst at Interactive Brokers.
The pan-European STOXX 600 index closed 0.66% higher at 513.61 points, near its highest level in a month, with the German benchmark index hitting a record high as investors expected the fall of 0.8% of the euro would have benefited listed exporters. in the index.
Since French President Emmanuel Macron called an early election in June, the CAC-40 has fallen nearly 10%, representing the biggest decline among the European Union’s major economies. On the other hand, the German index rose by more than 7%, also helped by expectations of imminent interest rate cuts by the European Central Bank (ECB).
French banks Credit Agricole and BNP Paribas closed down 0.9% and 1.2% respectively.
On the other hand, French export-oriented luxury stocks such as Hermès and LVMH rose more than 3% each, benefiting from a weaker euro. The luxury index is at the top of the sector rankings with an increase of 2.3%.
IN LONDON the Financial Times index advanced by 0.31%, to 8,312.89 points.
IN FRANKFURT the DAX index rose by 1.57%, to 19,933.62 points.
IN PARIS, the CAC-40 index gained 0.02%, to 7,236.89 points.
IN MILAN the Ftse/Mib index grew by 0.21%, to 33,483.17 points.
In MADRID, the Ibex-35 index recorded an increase of 0.81%, to 11,735.30 points.
IN LISBON, the PSI20 index depreciated by 0.87%, to 6,362.81 points.
Source: Terra
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