Paris stock exchange sees decline of 6.42 percent in June, worst performance in 2 years
Date
6/30/2024 3:08:13 AM
(MENAFN) The Paris stock exchange experienced a significant decline of 6.42 percent this June, marking its worst performance since June 2022. This downturn is attributed to the dissolution of Parliament in France and the uncertainty surrounding the formation of the next legislative body amid the rise of the far right.
On Friday, just two days before the first round of legislative elections in France, the CAC 40, the main index of the Paris Stock Exchange, closed with a loss of 0.68 percent, ending at 7,479.40 points, its lowest level since January 25, according to a French newspaper.
Additionally, the interest rate gap between France's 10-year loan and Germany's, the European benchmark, is the widest it has been since 2012. The French stock market's sharp fall on Friday was in contrast to other European markets; the Frankfurt Stock Exchange closed with a gain of 0.14 percent, and the London Stock Exchange increased by 0.19 percent. These increases were supported by data aligning with economists’ expectations regarding inflation, particularly in the United Kingdom. Over the month, the stock markets in Frankfurt and London fell by less than 1.5 percent.
The quarterly results for the Paris Stock Exchange were also disappointing. The second quarter of 2022 saw a worse performance (-8.85 percent) compared to the past three months. During the first six months of this year, the Paris market's overall performance was negative (-0.85 percent), despite the index reaching a record high of 8,259.19 points on May 10.
Marine Mazet, an economist and bond analyst at Nomura Bank, stated in an interview with a news website that since the announcement of the dissolution of the National Assembly on June 9, investors have been particularly keen to limit their exposure to what they consider the riskiest investments, including stocks and French debt.
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