The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange rose again on Tuesday, without yet compensating for the heavy losses recorded after the announcement of the dissolution of the National Assembly, and recorded a marked drop for Carrefour, pinned down by Bercy.
After an increase of 0.91% on Monday, the CAC 40, which fell by more than 6% last week, increased by 0.76% on Tuesday to finish at 7,628.80 points.
But the flagship Parisian index is far from having returned to its level before the European elections, above 8,000 points, and remains down 4.66% since June 7.
The European Eurostoxx 600 index, swept up in the French political turmoil, ended Tuesday up 0.69% to 515 points, compared to more than 523 at the close on Friday June 7, before the European election.
After having “reacted quickly by trying to understand the situation and see the potential impacts” last week, now “we are in a second phase of analysis” which is more rational, noted Nicolas Budin, head of equity management at Myria AM.
Certain sectors particularly affected last week, such as banks, have regained some color since Monday, noted this expert.
On the bond market, the gap between the French interest rate and the German rate for the 10-year loan narrowed slightly (2.39% for the German against 3.16% for the French) after significantly increased last week.
For the coming weeks, the market will remain attentive to declarations and news, because “with each poll, things can change,” added Mr. Budin.
“There may still be volatility”, while investors will scrutinize the programs and declarations of political leaders who are running for the French legislative elections, according to Mr. Budin.
And, if “for a short week, the question of central banks was not at the heart” of market news, “it may come back, perhaps not at the heart, but in any case in the overall analysis” , he reported.
The Carrefour model called into question
The action of French retailer Carrefour fell 4.26%, after falling more than 9% in early trading, following criticism from the Ministry of the Economy on the group’s links with its franchised stores.
Contractual conditions are “so obviously unbalanced to the detriment of franchisees” that it can only result “from the latter’s submission to these obligations”, according to the “voluntary intervention conclusions” of the services of the Ministry of Economy, revealed Tuesday by the media La Lettre, which AFP was able to consult and which are very critical of the distributor.
For its part, Carrefour “vigorously contests” in a press release “the grievances of the Ministry of the Economy relating to the management of its franchise network”.
© 2024 AFP
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