France: electoral rally over. The shares are practically back to last week’s level
The rally, i.e. growth, of the French stock market is already over and the French stock market is returning to the level it had on Friday. The "Celebration", if we can call it that, linked to the fact that the RN did not win a large number of seats in the first round, despite being ahead, has already run out and, little by little, we are returning to the normal level of uncertainty.
Here is the performance of the 40 largest stocks on the Paris stock exchange :
Evidently new elements of uncertainty are being added to those already present. first of all, although the extreme left and the centrists have withdrawn 190 candidates so as not to wage war and concentrate votes against the Rassemblement National, it is not a given that the voters will follow their instructions.
The soldiers give a situation in which the Rassemblement National is unlikely to have an absolute majority, but in which it can obtain this result with the Republicans, i.e. the former Gaullists. If they do not agree to form a government, then Bardella and Le Pen could calmly sit on the bank of the river and wait for the current to carry the corpses of the prime ministers proposed by the New Popular Front and the Macronians, torpedoing them as they propose themselves.
The French stock exchange had celebrated on the wave of the possibility of a caretaker government in a situation of equality. But why should those who control 470 out of 577 deputies accept a solution that would displease them? At this point, however, a political government, right or left, appears much more likely. This possibility is deflating with each passing day, and even some newspapers, such as Le Figarò, are repositioning themselves politically in a less harsh way towards the RN.
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The article France: electoral rally over. Shares practically return to last week's level comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/francia-rally-elettorale-finito-le-azioni-tornano-praticamente-al-livello-della-scorsa-settimana/ on Tue, 02 Jul 2024 13:56:57 +0000.