(News Bulletin 247) – The flagship Parisian index has returned above 8,000 points, despite the political crisis shaking France. Arcelormittal was buoyed by new proposals from the European Commission to curb steel exports to the European Union.

The Paris Stock Exchange ends this session on Wednesday October 8 with a clear increase. At the close, its main index, the CAC 40, increased by 1.07%, to 8,060.13 points. Investors have digested the latest (many) news linked to the French political crisis.

In a last attempt to find a government (and later a budget), resigning Prime Minister Sébastien Lecornu undertook a marathon consulting the different political parties. After receiving training from the right and the center on Tuesday, he spoke with the left-wing parties this Wednesday. The resigning Prime Minister indicated that he would speak at the end of the day after his interviews, to the 8 p.m. news on France 2.

A race against time

A little earlier in the day, the political leader assured that he saw a “convergence” to reach a budget before December 31, which removes “the prospects of a dissolution”. He also assured that his interlocutors agreed on the fact that the public deficit should not exceed 5% of GDP in 2026.

However, the declarations of the different political parties do not really invite optimism. An emblematic figure of the National Rally, Marine Le Pen declared that she was censoring “everything” because “the joke has gone on long enough”. LR rejects the suspension of the pension reform, a measure which was suggested by Elisabeth Borne, who had nevertheless carried out this reform when she was Prime Minister. While, for his part, the president of the Socialist Party, Olivier Faure wants assurances on the suspension of such a reform.

“Yesterday, speculation was rife about the possibility of a new legislative election. For example, Polymarket estimates the chances at 67% that a new election will be organized rather than a new Prime Minister being appointed, compared to 49% at the time we went to press yesterday. At one point last night, this figure even reached 85%” Deutsche Bank points out this Wednesday.

Investors will also read the minutes of the last meeting of the American Federal Reserve this Wednesday evening.

Arcelormittal on the rebound

On the value side, Arcelormittal jumped 6.4% after the European Commission proposed measures (quota cuts, doubling of customs duties) to limit steel exports to the European Union.

The auto sector suffered from the profit warning issued by the German group BMW. , Renault lost 1.8% and Stellantis returned 1.3%.

On other markets, the spot (spot) price of gold crossed $4,000 per ounce overnight. Metal futures had already crossed this threshold the day before.

The euro lost 0.3% against the dollar to 1.1613 dollars. Oil rebounds. The December contract on North Sea Brent rose 1.5% to $66.41 per barrel while the November contract on WTI listed in New York gained 1.7% to $62.78 per barrel.