The control room of Euronext, the company that manages the Paris Stock Exchange (AFP/Archives/ERIC PIERMONT)
The Paris Stock Exchange ended up 0.91% on Monday, a fragile movement which does not compensate for the heavy losses of the past week, while investors prepare to experience the coming days according to political developments.
The flagship CAC 40 index gained 68.30 points to 7,571.57 points. Last week, it achieved its worst weekly performance since March 2022 (-6.55%), including a loss of 2.66% on Friday.
In 2024, the performance of the Parisian index has become positive again (+0.38%), but it remains far from that of other European places.
The rebound therefore remains “fragile”, estimates Andréa Tuéni, analyst at Saxo Banque. “The movements are erratic, there are a few upward breakthroughs but we quickly go back afterwards. The good news is that we are stopping the bleeding,” he continues.
The market must learn again to “navigate between political uncertainties”, with “a lot of programs which do not necessarily please investors”, but also the risk of “inaction” if no majority emerges from the two rounds of voting , observes Mr. Tuéni.
For three weeks, the markets will follow the evolution of the forces in the polls as well as the “precisions” that can be made to the different political proposals, according to the analyst.
On Monday, the president of the European Central Bank Christine Lagarde, questioned about the upheavals caused by the political crisis in France, affirmed that her institution was “attentive to the proper functioning of financial markets”.
“We continue to be attentive of course, but it is limited to that,” added Ms. Lagarde.
On the bond market, the interest rate on the 10-year French loan, the benchmark maturity, rose significantly, ending at around 3.21%.
The gap with the German rate is still around its highest level since 2011, during the eurozone crisis.
Important order for Thales
The Thales group announced on Monday that it was quadrupling the ammunition production capacity of its La Ferté-Saint-Aubin (Loiret) factory after a major order from the French army.
“The La Ferté-Saint-Aubin site will considerably increase production rates which will go from an overall annual production of 20,000 munitions in 2023 to more than 80,000 munitions per year by 2026,” the industrialist indicated in a statement.
The stock advanced 1.16% to 152.05 euros.
Rebound of affected sectors
The sectors most affected by the falls last week, notably banks and automobiles, regained some color on Monday.
On the financial side, Axa gained 1.87% to 29.98 euros, Bnp Paribas 1.25% to 59.14 euros, Société Générale 1.17% to 22.41 euros.
In the automobile industry, Renault advanced 1.08% to 48.66 euros, Stellantis gained 0.87% to 18.98 euros.
© 2024 AFP
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