(News Bulletin 247) – The CAC 40 is starting the week on the right foot, with the fall in Eurofins shares not weighing on the entire index.

The Paris Stock Exchange begins the week without much conviction, but on the rise. The CAC 40 increased by 0.5% at mid-session this Monday to 7,668.22 points.

“Traders remain largely hesitant to push riskier assets higher while uncertainty persists on the Old Continent in the run-up to the first round of legislative elections in France,” notes Pierre Veyret, technical analyst at Activtrades.

“Market questions regarding budgetary balances, but also about future economic measures, continue to put pressure on French assets (…) However, at this stage, the markets are far from anticipating a worst-case scenario. “that is to say the implementation of policies which would seriously handicap growth and induce a very serious slippage in public finances”, judges Sebastian Paris Horvitz, of LBPAM.

“While details of the programs are emerging, we cannot rule out still significant volatility affecting French and European assets. Concerning France, it is likely that the risk premium which has appeared in the country is likely to remain for a certain period of time. time,” he adds.

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Eurofins attacked by short seller

The markets will also monitor the release of certain indicators this week, such as the PCE index, the preferred gauge of the American Federal Reserve (Fed) to measure inflation, which will be published on Friday afternoon.

On values, Eurofins plunged 21% after suffering an attack from short seller Muddy Waters.

The pharmaceutical laboratory is one of the rare CAC 40 stocks to move in the red, with the other declines (EssilorLuxottica, Orange, Engie, Carrefour) experiencing very moderate declines. On the side of the strongest increases, BNP Paribas (+1.9%) and Edenred (+1.7%) are well oriented.

Valneva gains 5.5% while its anti-chikungunya vaccine has been approved in Canada.

On other markets, the euro gained 0.3% against the dollar to 1.0723 dollars. Oil is gaining some ground. The August contract on North Sea Brent gained 0.5% to $84.75 per barrel, while that of the same maturity on WTI listed in New York gained 0.4% to $81.08 per barrel. .