[STOCK MARKET UPDATE] Paris stock market in disarray after European elections

The Paris Bourse is going through a tumultuous period following Emmanuel Macron’s announcement of the dissolution of the National Assembly and early parliamentary elections. The CAC 40 fell significantly, erasing its annual gains and reaching its lowest level since January. This political decision exacerbated investor uncertainty, triggering a serious correction on French financial markets.


Emmanuel Macron’s political gamble has not reassured everyone. The Paris Bourse had a particularly difficult day on Friday, with the CAC 40 dropping 2.6% to 7,504 points.


This marks a 6.3% plunge over the week as a whole, the worst weekly performance since early March 2022 (-10.2%), when Russia’s invasion of Ukraine triggered a similar collapse. At 2 p.m., the flagship index stood at 7,542.65 points (-2.15%).


President Emmanuel Macron’s decision to dissolve the French National Assembly and call early parliamentary elections made investors even more nervous. Fears of a possible defeat for the pro-European presidential majority at the hands of the Rassemblement National sent shockwaves through the markets.


The CAC 40 fell by over 5% following the dissolution of the National Assembly, taking its losses to over 8% since its record high on May 15. In the space of a week, nearly 90 billion euros of capitalization evaporated. The index thus erased its annual gains and reached its lowest level since January, with all its components down, from Sanofi (-0.2%) to Thales (-5.9%).


A stirring dissolution


The Rassemblement National, which became the country’s leading political force following its victory in the European elections, is credited with 32% of voting intentions for the legislative elections, according to an Opinionway poll. The “popular front” on the left would reach 25%, while the presidential majority would be at 19%.


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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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