Paris stock exchange falls, catching up with presidential election – zimo news


Paris bourse closed down 1.28% on Tuesday, sandwiched between the start of new sanctions on Russia, the policy of the U.S. Federal Reserve and less than a week of uncertainty over the first round of the presidential election.

The Star CAC 40 index fell 85.86 points to 6,645.51. The day before, it rose 0.70%.

The fall in Paris ratings was more pronounced than in other European financial centres such as Milan (-0.86%) or Frankfurt (-0.65%), with London even up 0.72%. During the day, she lost nearly 2 percent.

Mirabaud fund manager Yann Azuelos noted that the reconciliation between the two favorites, Emmanuel Macron and Marine Le Pen, in the second round of voting “put pressure” on the Paris market.

The outgoing president’s lead in the polls has so far kept the French election on the radar of investors.

These concerns are added to those of other global financial centers, such as mainly Western sanctions against Russia.

The European Commission on Tuesday proposed tightening sanctions on Moscow, halting the purchase of Russian coal, which accounts for 45 percent of EU imports, and closing European ports to Russian ships or operated by Russians.

The Brussels proposal will be discussed on Wednesday by representatives of 27 countries.

For its part, the U.S. prohibits Russia from paying its debts in dollars held by U.S. banks, raising the risk of a Russian default.

Also, on the currency front, the U.S. central bank (Federal Reserve) is “ready to take stronger action” if necessary, and one of its governors, Lyle Brainard, reassured it on Tuesday that slowing monetary policy is “critical.” Important” inflation hit the highest level in the US in 40 years.

She also said the agency would “rapidly shrink its balance sheet from (its) May meeting.”

Bank stocks, which are very sensitive to economic conditions and activity, are most affected by uncertainty related to the presidential election. Societe Generale fell 5.58% to 22.66 euros, Crédit Agricole fell 5.03% to 10.32 euros and BNP Paribas fell 4.56% to 49.00 euros.

Companies benefiting from state concessions, such as Vinci on the Autobahn (-4.09% to €88.38) or Eiffage (-4.19% to €88.30), and companies serving the community, such as Veolia (-5.28% to €88.30) 28.32 euros) ), also suffered. “This creates risks for contract negotiations and even nationalisation,” explained Mr Azuelos.

Orpea plummeted again (-6.13% to €36.11) after nearly 80 complaints from residents’ families, notably “endangerment” and “manslaughter”.

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