Paris stock exchange exited the race narrowly (+0.12%) on Monday, mainly thanks to the results of the banks and the first round of the presidential election, with outgoing President Emmanuel Macron leading the presidential candidate people. Right Marine Le Pen.
After opening slightly lower, the CAC 40 moved in the green throughout the second half of the session, closing modestly up 0.12% at 6,555.81. Places in Paris closed up 1.34% on Friday, but were down 2.04% for the week, slightly ahead of their European neighbors, amid concerns as the first round loomed.
Unlike other major European markets that ended in losses, the Paris rating showed a “minor technical rebound” while “in market logic, a second round of the Mélenchon/Le Pen showdown is considered the worst case scenario,” explained the letter to France. Mikaël Jacoby, Head of Continental Brokerage at Oddo Securities.
However, uncertainty remains over the April 24 second round, which will see Ms Le Pen face Mr Macron.
“The market welcomes Emmanuel Macron’s victory as it will reflect a reduction in political uncertainty and the maintenance of policies favorable to companies,” BNY Mellon strategist Lale Akoner estimated.
“On the other hand, a Marine Le Pen victory would mean an increase in political uncertainty, which could lead to a sharp drop in the market,” the expert continued.
For others, Mr Jacobi stressed, “the environment against inflation, soaring interest rates, central bank measures and an extremely distressing geopolitical backdrop remains the same”.
Rising bond yields benefited the financial sector but hurt tech stocks.
green bank
Six weeks after the invasion of Ukraine began, Societe Generale announced on Monday that it would end its activities in Russia by selling its entire stake in Rosbank to a Russian oligarch.
RBC analysts described the exit announcement as “positive” and they also highlighted the “manageable” impact of the business on the bank. The stock rose 4.96 percent to 22.95 euros.
In an environment in pursuit of sovereign yields, BNP Paribas closed up 1.88% at 48.75 euros, Crédit Agricole closed 1.24% at 10.01 euros and insurer Axa closed up 2.85% at 26.50 euros.
Red Technology and Luxury
On the other hand, tech stocks, which are very sensitive to inflation and interest rates, fell like industry software champion Dassault Systèmes (-3.37%).
The luxury industry has been weighed down by the health of China. Hermès fell 3.21%, Kering fell 2.90% and LVMH fell 1.87%.