Paris Stock Exchange Struggles Amid Uncertainty and Political Turmoil in June

The Paris Stock Exchange closed with a loss of 0.68% on Friday, reaching its lowest level since January 25. This was caused by a combination of factors, including the dissolution of the National Assembly by Emmanuel Macron on June 9, which began a downward trend that has persisted throughout the month.

Investors have been hesitant to invest in risky assets due to uncertainty surrounding the upcoming elections in France. Polls show the National Rally leading in voting intentions, followed by the New Popular Front and President Macron’s camp. However, the election outcomes remain uncertain with many potential duels and alliances.

Concerns about expensive economic programs and France’s ability to reduce its public deficit have also affected the stock market. The interest rate on French 10-year bonds reached its highest level since November. Companies like Société Générale, Crédit Agricole, and BNP Paribas saw significant declines, as did sensitive state-linked companies like Vinci and Engie.

Airbus and Eurofins Scientific also struggled in June due to financial targets and criticisms from investors. Only three companies on the CAC 40 ended the month with higher share prices, including Kering, Sanofi, and Capgemini. Despite some positive performances, overall, the Paris Stock Exchange continues to face challenges and uncertainty in the market as it navigates these complex issues.