The week was challenging for France on the markets, with the CAC 40 falling and tensions rising on borrowing rates. Investors were left confused by the announcement of the dissolution of the National Assembly, while uncertainty over the outcome of the French elections was a major concern for analysts.
According to a poll, both the RN and left alliance could potentially collect more votes than the presidential majority in the upcoming elections, leading to a weakened government. This poses a risk of increasing budget deficits at a time when France’s borrowing rates are already high.
Investors have been cautious, with banks experiencing significant declines in their share prices due to uncertainty about political instability and changes in government direction. The possibility of political instability has added to concerns about France’s economic outlook.
The interest rate at which France borrows has fluctuated, reflecting investor confidence in its long-term economic prospects. The gap between French and German borrowing rates has widened, indicating a lack of confidence in France’s financial stability.
Certain industries have experienced declines in their share prices as a result of proposed policies from the RN, such as privatizing public broadcasting and nationalizing highways. This has added to market volatility and impacted various sectors of the economy.
Overall, political uncertainty in France has created unease among investors, leading to significant market volatility and impacting various sectors of the economy.
