(BFM Stock Exchange) – The CAC 40 progresses a little, carried by the increases in Kering and LVMH.
The Paris Stock Exchange is still stretching but displays a very slight increase, the day after the shock wave caused by the surprise resignation of the Prime Minister, Sébastien Lecornu.
The CAC 40, its main index, advances from 0.3% to 7,996.03 points in the early afternoon, this Tuesday, October 7, after having sold 1.36% the day before.
“Even if the president asked Sébastien Lecornu to devote additional 48 to see if a compromise can be found at the Assembly, the political impasse seems total. This President’s approach always seems to indicate that he always dismiss the call for a new dissolution of the Assembly. The more the political impasse continues, the more negative for the economy”, write in a note the economists of LBPAM.
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Luxury helped by Morgan Stanley
“French assets have been negatively affected by this new phase of uncertainty. Nevertheless, the bond market reacted moderately, with a spreading of the Spread between the French and German sovereign rate at 10 years under 4 basis points, going to 85 basic points (0.85 percentage points, editor’s note)”, they add.
The political impasse above all prevents France from having a budget for 2026 and thus correcting the trajectory of its public finances. Goldman Sachs expects a deficit at 5.5% of GDP for this year (against 5.4% for the government) but especially on 5.3% of GDP for 2026, much more than the 4.7% referred to by the resigning Prime Minister Sébastien Lecornu.
On the values side, the trend is supported by luxury increases, notably Kering and LVMH, which take 6.5% and 3.4% respectively, carried by counseling of Morgan Stanley to “overlap” on the two titles.
Valneva lost 7.4% after lowering its perspectives and offbeat the publication of the results of a flagship clinical trial.
In the other markets, the euro lost 0.5% against the dollar at $ 1.1658. Oil is stable. The December contract on the Brent de Mer of the North is exchanged at $ 65.43 per barrel while that of November on the WTI listed in New York is 61.63 dollars per barrel.
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