Impact

<p>The French stock market is experiencing a period of turbulence since the announcement of the dissolution of the National Assembly and early legislative elections. Investors, worried about political uncertainty and its repercussions on the economy, have caused a drop in stock prices. This French storm does not spare other European markets, which are also experiencing the collateral effects of French political instability.</p>
<figure class="wp-block-image size-full"><img decoding="async" width="465" height="227" src="https://www.cointribune.com/app/uploads/2024/06/pls.jpg" alt="" class="wp-image-701186" srcset="https://www.cointribune.com/app/uploads/2024/06/pls.jpg 465w, https://www.cointribune.com/app/uploads/2024/06/pls-300x146.jpg 300w" sizes="(max-width: 465px) 100vw, 465px">
 <figcaption class="wp-element-caption">
  The French stock market now attracts attention (Source: <a href="https://x.com/Zonebourse/status/1802588806148710687" target="_blank" rel="noopener noreferrer nofollow">Twitter</a>)
 </figcaption>
</figure>
<h2 id="h-the-french-stock-market-under-pressure">The French Stock Market Under Pressure</h2>
<p>Last week, the <a href="https://www.cointribune.com/en/stock-exchange-the-cac-40-collapses-is-it-macrons-fault/" target="_blank" rel="noopener noreferrer nofollow">CAC40</a> suffered <strong>a heavy drop of 6.3%</strong> in just five sessions, a major and rather rare event. This weekly decline is comparable to:</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<ul>
 <li>the 10.2% drop recorded at the end of February 2022 after the Russian invasion of Ukraine,</li>
 <li>the 6.4% drop in October 2020 following the announcement of the second Covid-19 lockdown by Emmanuel Macron.</li>
</ul>
<p>The most affected sectors are banking (-12% for the week) and concessions and public services (-11%), penalized by political uncertainties. This pressure is expected to <strong>persist until the verdict of the early legislative elections at the end of June</strong>.</p>
<p>According to <a href="https://www.zonebourse.com/actualite-bourse/La-Bourse-de-Paris-en-PLS-46982537/" target="_blank" rel="noopener noreferrer nofollow">analysts</a>, this sharp decline reflects investors’ concerns about political turmoil in France. They are seen as <strong>a potential “black swan”</strong> likely to have major and unpredictable consequences on the economy.</p>
<h2 id="h-what-about-the-european-and-american-stock-markets">What About the European and American Stock Markets?</h2>
<p>The concern is not limited to France. The <strong>European stock market as a whole</strong> has taken a hit in recent days. In contrast, the American markets continue their ascent. The Nasdaq 100 even reached a new record last week with a rise of 3.5%.</p>
<p>However, this performance hides disparities. Only <strong>large-cap stocks</strong> like Microsoft, Apple, and Nvidia truly stand out. They have risen by 4 to 9%. Small and medium-sized enterprises struggle to keep pace.</p>
<p>The question now is whether the French stock market will be able to recover from this <a href="https://www.cointribune.com/en/public-finances-would-be-threatened-by-the-dissolution-of-the-national-assembly/" target="_blank" rel="noopener noreferrer nofollow">political storm</a>. A rebound is possible, especially if the results of the legislative elections help dispel uncertainties and establish a stable government.</p>

Stock Market in a Faint: How Does the French Crisis Impact the Markets?

Table of Contents

Cointribune EN

Other articles published on Jun 17, 2024

Malaysia cracks down on crypto tax evaders with Ops Token

Rollblock (RBLK) Closes In On The $1M Raised Mark As Solana (SOL) and Uniswap (UNI) See Declines

Celestia Innovates Blockchain Scalability

South Korea May Delisting 600 Altcoins Under New Law

Slothana and Bonk Slip Behind as MoonBag Coin Rockets to the Top With 88% APY Staking, Aiming for...

Bitcoin Stalls at $66,000 – Is the Bull Market Over or Will Altcoins Like Ethereum Set New ATH?

Join our free newsletter for daily crypto updates!