[STOCK MARKET UPDATE] Volatile week on the Paris Bourse in a wait-and-see environment

The Paris Bourse experienced a volatile week, marked by political uncertainties and economic indicators. The main European indices recorded significant declines, accentuated by the prospect of legislative elections in France and the UK. Investors remain cautious, awaiting further signs of economic improvement.


The European stock markets began the Friday June 21 session slightly down, awaiting the first indicators on economic activity in June and in a climate of uncertainty linked to the prospect of legislative elections in France and the UK.


The previous week, following the announcement of the dissolution of the French National Assembly, Paris fell by 6.23%, its worst performance since March 2022. Milan (-5.76%) and Frankfurt (-2.99%) had also experienced their worst week of 2024, and London had lost 1.19%.


After rising by 2.24% since Monday, the CAC 40 began the last day of the week on a stable note, with a slight drop of 0.03% to 7,668.9 points around 9:30 a.m., while the Frankfurt and London indices were down by 0.11%. The Paris flagship index was still down 0.57% at 7,627.2 points around 2:30 pm.


According to experts, this Friday could be marked by a degree of volatility due to the “four witches” day in France, which corresponds to the expiry of options and futures on equities and indices.


Investors are now turning their attention to the PMI indices for private-sector activity in Europe and the United States for the month of June. These indices are being scrutinized for signs of improving economic activity and easing cost pressures.


Contraction of economic activity in the euro zone


This Friday, investors took note of the release of the Eurozone PMI indices, leading indicators of private sector activity, showing a decline in the Eurozone for the month of June. The composite index, which groups together the service and manufacturing sectors, fell to 50.8 from 52.2 in May. An index of 50 marks the boundary between contraction and expansion in economic activity.


In France, the composite PMI fell from 48.9 in May to 48.2 in June.


According to Norman Libeke, economist at Hamburg Commercial Bank, “The uncertainty surrounding the forthcoming parliamentary elections is causing a certain amount of paralysis among French companies, who fear a deterioration in economic conditions”. He also notes that “some are attributing the downturn in their business to the upcoming elections, while demand is also trending downwards, as evidenced by the first drop in new business for three months in the services sector.”


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Featured photo : © Images.net

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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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