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">
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  The French stock market now attracts attention (Source: <a href="https://x.com/Zonebourse/status/1802588806148710687" target="_blank" rel="noopener noreferrer nofollow">Twitter</a>)
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<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>
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<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?

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