The Paris Stock Exchange is expected to fall slightly after the presidential elections – 04/11/2022 at 08:48

The Paris Stock Exchange is expected to open slightly lower on Monday after the first round of presidential elections, in which far-right candidate Marine Le Pen qualified for the second round with incumbent President Emmanuel Macron.

The flagship CAC 40 index futures contract fell 0.44% about thirty minutes before the session opened. Friday ended 1.34% higher, marked by central banks’ desire to show determination to fight inflation.

“European markets should open lower with no signs of improvement for the CAC 40 after the first weekend of voting in France,” said Michael Hewson of CMC Markets.

The advantage “greater than expected” of Emmanuel Macron (27-28%) over Marine Le Pen (23-24%) allowed “a brief recovery in Asia” for the euro, which however ended up retreating, the analyst added.

The prospects for the second round, with the latest polls showing the current president narrowly winning the election, are worrying.

“A narrowing of the gap in favor of Le Pen, who is known to have clear sympathy for Russia, could dampen investor sentiment ahead of the final elections scheduled for April 24,” confirmed Ipek Ozkardeskaya, an analyst at Swissquote.

In addition to the French presidential elections, the health situation in China could also weigh on the Paris index, after making Asia nervous. “Fears are growing that a prolonged lockdown in China, which could spread to other major industrial cities, will cloud an already bleak outlook for Chinese growth,” Hewson said.

In addition, “Russia’s shelling of major fuel depots in Ukraine threatens farmers’ fuel supplies as the planting season is about to start,” which could have a major impact on world “prices” for fuels. food, the analyst said.

The economic docket is also loaded with big indicators, with plenty of inflation data released this week, following Monday morning’s announcement of near-zero economic growth in the UK in February (+0.1%). “All of these data carry risks to the upside and could add to the noise around faster tightening by the Bank of England,” Hewson noted.

“My overriding impression at the start of the week is that risks on multiple fronts are rising, led by Covid-zero and the possible slowdown in China, followed by inflation,” he summarized.

– Enter the values ​​to follow on Monday

Société Générale: The French bank announced on Monday “to cease its activities” in Russia and will sell its entire stake in Rosbank, a heavyweight in the Russian banking sector, as well as its insurance subsidiaries in the country, according to a press release. This “planned transaction should lead” to a negative impact on its accounts of 3.1 billion euros, the bank said.

TF1: The audiovisual groups TF1, M6 and Altice announced this Friday that they had signed agreements for the sale of the TFX and 6ter channels to Altice, in the event that the planned merger between TF1 and M6 materializes.

Airbus: Airbus won 104 new orders in March, but recorded 63 cancellations of A330s ordered by the Malaysian company Air Asia X, today in difficulty.

cdu / jvi / er

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