17h00 ▪
3
1 minute of reading ▪ By
The French stock market has been experiencing a period of turmoil since the announcement of the dissolution of the National Assembly and the holding of early legislative elections. Investors’ concerns about political uncertainty and its repercussions on the economy caused stock prices to decline. This French storm does not exclude other European markets, which are also witnessing the side effects resulting from French political instability.
![](https://www.cointribune.com/app/uploads/2024/06/pls.jpg)
The French stock market is under pressure
Last week, the CAC40 index suffered sharp decline 6.3% In just five sessions, a large and rather rare event occurred. This weekly decline can be compared to the following:
- The decrease of 10.2% recorded at the end of February 2022 after the Russian invasion of Ukraine,
- Decrease by 6.4% in October 2020 after Emmanuel Macron announced the second lockdown due to the Corona virus.
The sectors most affected are banking (-12% for the week) and franchises and public services (-11%), affected by political uncertainties. This pressure is expected to continue It will continue until the ruling is pronounced in the early legislative elections at the end of next June.
according to AnalystsThis sharp decline reflects investors’ concerns about political unrest in France. They are seen as Potential “black swan”. It is likely to have severe and unexpected consequences for the economy.
What about European and American stock markets?
The concern is not limited to France. the The European stock market as a whole It has taken a hit in recent days. On the other hand, US markets continue to rise. The Nasdaq 100 reached a new record high last week with a 3.5% rise.
However, this performance masks disparities. Just Large-cap stocks Like Microsoft, Apple and Nvidia really stand out. It has increased by 4 to 9%. Small and medium-sized businesses are struggling to keep up.
The question now is whether the French stock market will be able to recover from this political storm. A recovery is possible, especially if the results of the legislative elections help dispel doubts and form a stable government.
Make the most of your Cointribune experience with our Read to Earn program! Earn points for every article you read and get exclusive rewards. Register now and start getting the benefits.
Click here to join the Read to Earn program and turn your passion for cryptocurrencies into rewards!
I am called Ariela and have been for 31 years. Please enter the redaction web domain for 7 days. I haven’t been able to discover trading and cryptocurrencies for several years. But that’s the universe that cares so much. The themes shown in the painting allow me to see the advantages. Singing over the past hours, I also cultivate a great passion for music and lecturing (and animals!)
Disclaimer
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decisions.