The Paris Stock Exchange remained unchanged after the legislative elections

The Paris Stock Exchange was close to equilibrium on Monday morning, with investors ignoring the results of the French legislative elections and maintaining their cautious stance amid the risk of recession in the United States. The star CAC 40 index has been hovering around equilibrium since opening, rising 0.29% to 10,599.63 at 10 am. On Friday, it fell to its lowest level since March 2021, recording a weekly loss of 4.92%, the worst since the Russian invasion of Ukraine.

«Market conditions remain very difficult due to high inflation, aggressive tightening of funds by central banks, and economic slowdown, which increases the risks of recession.Said Xavier Chapard of La Banque Postale AM. In particular, the growth of key interest rates by the US Federal Reserve (Fed) by 0.75 percentage points shocked the markets.

For Oanda analyst Jeffrey Hull «list of recession factorsit’s long:In developed countries, the rise in inflation rates, the war between Ukraine and Russia, and consequently the disruption of raw materials, the slowdown in China.«. Across the Atlantic are the claims of economists and members of the US political authorities who, at best, expect the economy to slow down and, at worst, to decline next year. For Mr. Husson «The risk now is that the Fed will have to be even more aggressive in its next meetingsto control inflation. One of the Fed’s executives also said that he was in favor of a further increase in key interest rates by three quarters in July, and Cleveland Fed Chairman Loretta Mester estimated that she:It will take two yearsincrease inflation to 2%.

Consequences after the legislative elections

Legislative elections in France ended with the loss of an absolute majority of President Emanuel Macron in the National Assembly. Macronist candidates together receive 245 seats, ahead of the left-wing coalition Nupes, its allies (137 seats) and the RN, which has made historic progress (89 seats). Macron’s isolated camp without a coalition, which guarantees him an absolute majority.A slight negative scenario for French assets, as it would limit France’s ability to push through reforms, clean up its public finances, and maintain political uncertainty at a high level.“, – assessed Xavier Chapard. «But this scenario is not so negative, as the government would remain centrist, very pro-European“, He finished. There were no signs of post-election stress in the debt market. The New York Stock Exchange will also be closed on Monday, on the occasion of the state holiday in the USA.

Pfizer’s share in Valnja

The American Pfizer laboratory will acquire 8.1% of the capital of the French-Austrian biotechnology Valnja in the amount of 90.5 million euros through a capital increase. Valnja’s shares rose 13.43% to 8.99 euros.