(BFM Bourse) – The CAC 40 fell significantly in the first exchanges this Monday, after the decision taken on Sunday evening by Emmanuel Macron to dissolve the National Assembly.
Emmanuel Macron is taking the market by storm. Following the announcement of the dissolution of the National Assembly, the CAC 40 fell by more than 2% this Monday morning.
Among the stocks which dropped the most at the start of the session, were the banks, Société Générale and BNP Paribas, each showing a drop of more than 5%.
The Parisian market clearly underperforms other European markets. At the same time, the London Stock Exchange lost 0.7% and that of Frankfurt lost 0.8%.
A case reminiscent of Italy?
At the end of European elections which, in France, placed the National Rally very clearly in the lead, the President of the Republic Emmanuel Macron decided to learn the lessons of this election, by dissolving the National Assembly. In other words, the French will be called to the polls to elect their representatives to the National Assembly, during two rounds, on June 30 and July 7.
This creates significant political uncertainty regarding the future parliamentary majority, with the specter of possible political cohabitation. However, the market hates uncertainty.
“This situation of uncertainty could create a chaotic evolution of the markets during the period. However, the uncertainty of the arrival to power of the extreme right in France could be put into perspective, with the policies pursued by Giorgia Meloni in Italy , whose party also collected the largest number of votes in the European election”, underlines Sebastian Paris Horvitz, director of research at LBPAM.
Julien Marion – ©2024 BFM Bourse