(BFM Stock Exchange) – The Parisian index clearly accelerated its losses after the Prime Minister announced on Monday the holding of a vote of trust on September 8, a procedure which initiates the responsibility of the government.

The end of the session was very difficult for the CAC 40 and the political risk returned more beautifully. The Paris index finished down 1.59% on Monday, August 25, at 7,843.04 points.

The CAC 40 completely won around 4 p.m. when Prime Minister François Bayrou was speaking as part of a press conference. The Head of Government then announced that he would request a vote of confidence before Parliament on September 8, exposed de facto to a new censorship.

The national rally, rebellious France and the French Communist Party have indicated that they would not vote for confidence in the Bayrou government as part of this ballot. The president of the national rally, Jordan Bardella, claimed to plan “the end of the current government” while the coordinator of rebellious France, Manuel Bompard, said he wanted to “fall” this same government.

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The construction and the banks in the hard

This revived the fears of a political blocking on the side of investors. “This has clearly had an impact on the CAC 40. As we can see because the most penalized companies are those whose activities are most exposed to France and at political risk, such as construction groups and banks. There is clearly a Franco-French logic. We see it with BNP Paribas which lost almost 3% in a few minutes”, decorted Frédéric Rozier de Mirabaud France.

The highest drops were accused by Vinci (-5.8%), Eiffage (-5.4%), Veolia (-3.8%), Bouygues (-4.5%) and BNP Paribas (-3.5%) and Société Générale (-3.5%).

On the bond market, there is clearly tension at the end of the session. The yield of the French obligation at 10 years increased by 7.5 basic points (0.075 percentage points) is more than the rates of the same due date of the German (3.8 basic points) and Italian (5.4 base) titles.

Market operators have many meetings this week, especially to gauge inflation. The PCE index, the Fed favorite barometer, will be published on Friday. On the same day the consumer price index, the best known measure will be communicated in the various countries of the euro zone.

At the company level, the quarterly results of Nvidia, expected Wednesday after the closing of the market, will constitute the major event of the week.

In other markets, the euro lost 0.31% against the dollar at $ 1.1684. Oil is advancing. The October Brent of the Northern Sea contract earns 1.37% at 68.13 Dollars per barrel while the same maturity on the WTI listed in New York advances 1.7% also at 64.69 dollars.