Cac 40 welcomes Emmanuel Macron’s benefits over Marine Le Pen, but volatility begins, market news

The Paris Stock Exchange outperforms other European markets in a market affected by new volatility after Emmanuel Macron’s narrow lead over Marine Le Pen after the first round of the French presidential election. Markets are also nervous in an environment that remains focused on inflation and monetary tightening prospects due to commodity price tensions highlighted by the war in Ukraine.

During the session Bedroom 40 With a trading volume of around € 980 million, it rose 0.76% to 6,597.84 points after a low of 6,512.14 (-0.70%) and a high of 6,605.81 (+ 0.88%). In Frankfurt Daks Losing 0.33%, in Milan, FTSE Eb 0.26% Hippoglossoides.contract future US index fell between 0.1% Dow Jones And 0.8% Nasdaq 100..

On the securities side, in response to Emmanuel Macron’s slightly higher than Marine Le Pen, yield spreads between the German American Bund with the same maturity as the French 10-year OAT have narrowed. The bank is surrounded. Societe Generale It won almost 7% after the announcement of an agreement to sell the shares of Russian bank Rosbank and its insurance subsidiary. Among other financial stocks BNP Paribas 3.6% highly rated, AXA 3%. The financial sector can benefit short-term from the recovery of bailouts thanks to Emmanuel Macron’s initiative to strengthen European integration.

Same as above for highway concessionaires VinkMe and EiffageMarine Le Pen proposed a renationalization of the highway, which increased by 3.1% and 2.7%, respectively, after decreasing last week.

Conversely, the luxury division, which has made strong progress under President Emmanuel Macron, is struggling to release as a quarterly sales announcement. LVMH (-1.3%) and Hermes (-1.9%).

Bets are open in the second round

Many analysts believe that Emmanuel Macron’s slight lead over his rivals shows that Marine Le Pen has never been so close to victory. According to some, the latter victory is considered anti-European and pro-Putin and can cause shock waves comparable to those caused by the 2016 Brexit victory. For Emmanuel Macron, the postponement of the vote from the left would be decisive given the score of Jean-Luc Melenchon, who finished third in the first round.

Within two weeks, the two candidates will decide which one to use and try to lay the groundwork for nature. In the forex market, the euro is stable at $ 1.0955, but Emmanuel Macron won 54% of the 46% of Marine Le Pen in the first vote of the second round. But as long as Marine Le Pen has the potential to win, the market should not be too confident in the slight benefits of Emmanuel Macron. Far from zero “Banque Postal Asset Management strategist Xavier Chapard says.

Inflation, over and over again

Attention is strengthened by expecting the European Central Bank’s board to meet on Thursday. Inflation remains a central concern, with widespread expectations for a more aggressive shift in monetary policy, whether it is the early termination of asset purchase programs or the temptation to raise interest rates.

Inflation will still be a problem in the United States as consumer price indexes are released tomorrow in March. According to a consensus formed by Bloomberg, it could record an increase of 8.4% in a year, the first pass above the 8% standard since June 1982. Yields on 10-year US bonds have exceeded 2.75%. Marked for the first time since March 2019, after the peak of 2.7822%.

Start of first quarter earnings season

The situation in Ukraine continues to plague the market, especially with sanctions on Russian hydrocarbons. The European Union’s foreign ministers will meet in Luxembourg on Monday, but it is unlikely that an agreement will be reached on Russia’s oil and gas embargo.

The next few days will mark the start of the performance season for major US banks, especially JP Morgan Chase, Goldman Sachs, Citigroup and Wells Fargo.