(News Bulletin 247) – The Parisian index is moving close to equilibrium at mid-session this Friday, October 10 while Emmanuel Macron is supposed to name a new head of government that same day.
Like many French people, the Paris Stock Exchange is waiting to know who will be appointed to Matignon. President Emmanuel Macron has, in fact, promised to appoint a new Prime Minister by this Friday evening.
A wait which does not create real nervousness on the CAC 40. At mid-session on Friday October 10, the Parisian index progressed a little, gaining 0.24% to 8,062.329 points.
At the highest of the morning, the CAC 40 even reached 8,082.53 points, a tiny bit more than the approximately 8,081.54 points it must exceed to erase Monday’s drop (-1.36%), triggered by the resignation of Sébastien Lecornu.
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Stellantis climbs
For LBPAM economists, the constitution of a new government expected in the coming days remains a “slight relief for the markets because it avoids, for the moment, the call for early legislative elections”.
“But it remains to be seen whether this new government can survive for a while and pass a budget before the end of the year, which in any case will have to incorporate important and therefore costly concessions,” they add. “Despite an already high risk premium in France and a risk of systemic crisis which seems contained to us, we remain cautious on French assets in the short term because political, budgetary and rating uncertainties are likely to persist,” they conclude.
On the value side, Stellantis gained 1%, driven by significantly increased sales (in volume) in the third quarter. Technip Energies and Nexans are both weighed down by Exane BNP Paribas, which, according to Reuters, went from “outperform” to “neutral” on the former and from “neutral” to “underperform” on the latter.
On other markets, the euro gained 0.1% against the dollar to 1.1577 dollars. Oil is falling. The December North Sea Brent contract lost 1.3% to $64.38 per barrel while the November WTI contract lost 1.3% to $60.71 per barrel.
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