The control room of Euronext, the company that manages the Paris Stock Exchange (AFP / ERIC PIERMONT)
The Paris Stock Exchange fell on Wednesday, after two rising sessions and a last week under high tension, still closely monitoring the early legislative election campaign.
The flagship CAC 40 index dropped 0.77% to 7,570.20 points at the end of a calm session, in the absence of the American market closed for a public holiday. Over the week, the Parisian index remained up 0.89% after losing more than 6% last week.
“We are still waiting for the elections,” summarizes Philippe Cohen, manager at Kiplink Finance.
“For the moment we have investor distrust”, “whatever the sector”, he added, and “as long as we do not have the plan of the new National Assembly”.
Investors haven’t had many indicators to analyze. Main event of the day, British inflation slowed to 2% year-on-year in May, therefore reaching the Bank of England’s objective. The figure is in line with analysts’ expectations.
The European Commission opened the way on Wednesday to procedures for excessive public deficits against seven EU countries, including France, where spending promises are increasing ten days before legislative elections, and Italy.
The news “is not a surprise” for the markets, LBPAM analysts stressed.
In Brussels, we refused to make any comments on the French political situation. Economy Commissioner Paolo Gentiloni said he was “very confident” in being able to negotiate with countries under “an adjustment path” procedure. “We absolutely must not dramatize this,” he stressed.
On the bond market, the situation continues to calm down. The gap between the French interest rate for the 10-year loan (3.19%) and that of Germany (2.40%) increased slightly compared to Tuesday, but remains a little lower than Friday.
“For the moment it has stabilized but it has not returned to previous levels” at the European elections, noted Mr. Cohen.
TotalEnergies: a “golden share” for the State?
The Senate commission of inquiry devoted to TotalEnergies (-0.47%) and climate action recommends that the State hold a “specific share” in the group’s capital to have a “right of inspection”, and cease ” as soon as possible” imports of Russian LNG, according to its report presented on Wednesday.
The commission of inquiry justifies this proposal in view of “the evolution of the threats weighing on the energy sovereignty of France and Europe, the evolution of the shareholder structure of TotalEnergies”, very oriented towards the United States, “and the need to support a European major in its energy transition efforts”.
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