[STOCK MARKET UPDATE] Paris Bourse: bearish trend in wake of NFP legislative election

The results of the parliamentary elections held on July 7 plunged financial markets into uncertainty. The absence of an absolute majority in the National Assembly caused the Paris Bourse to fluctuate wildly, while investors and companies alike expressed concern about the potential repercussions of this unstable political context.


The results of the early parliamentary elections held on July 7 left the National Assembly divided. The left-wing New Popular Front (NFP ) alliance won 178 seats, followed by the presidential camp with 150 seats and the National Rally and its allies with 143 seats.


No absolute majority was obtained, creating uncertainty as to the constitution of the future government and sparking varied reactions on the financial markets.


Faced with such a configuration, the Paris Bourse was hit hard. The CAC 40 index opened down 0.49% at 7,637.89 points on Monday, July 8, following a week-long rebound of over 2%. Despite this lower opening, the market recovered by midday, with the CAC 40 up 0.43% at 7,708.59 points around midday.


The bond market also reacted: France’s 10-year interest rate climbed to around 3.25%. This adjustment remains moderate compared with the European benchmark, the German bond at 2.58%. Prior to the dissolution, the spread between these two rates had narrowed significantly, although it remains notably above its pre-dissolution level.


Impact on sectors


Experts from the financial sector expressed a variety of views on the political impact of the elections.


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Featured photo : © Press

Picture of Hugues Reydellet
Hugues Reydellet
Hugues Reydellet is a young and passionate journalist whose favorite subjects are economy, culture, gastronomy, but also cars, and sports. With a sharp pen and an insatiable curiosity, Hugues is constantly on the lookout for new hot information to report.

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