Stock market: BNP Paribas loses its place as European leader

Emmanuel Macron's resounding announcement to dissolve the National Assembly caused a shock wave on the French economy, leading to the spectacular fall of BNP Paribas on the stock market. Investors, worried about political uncertainty and the possible repercussions of future economic plans, reacted quickly, heavily impacting the valuation of the leading French bank.

BNP Paribas in difficulty

BNP Paribas, recently known for its commitment to cryptocurrencies, is going through a tumultuous period. The decision to dissolve the National Assembly by Emmanuel Macron provoked a shock wave on the financial marketsseriously affecting the valuation of the bank.

In the space of a few weeks, the valuation of BNP Paribas fell from 82.5 billion euros to just 67.1 billion eurosprecise The echoes.

This dizzying fall allowed its Spanish rival, Santander, to surpass it with a valuation of 68.6 billion euros. Investors are worried about the political and economic uncertainties that loom, particularly in the run-up to the early legislative elections.

There prospect of a change in economic direction with parties like the National Rally or the New Popular Front raises fears about the stability and financing costs of French banks.

Repercussions on the stock market

The political storm triggered by Emmanuel Macron has not not spared the other major French banks. BNP Paribas, Crédit Agricole and Société Générale are among the biggest drops in the CAC 40 following the announcement of the dissolution.

This situation is exacerbated by the growing interest rate differentials on government bonds between France and Germanyworrying investors even more.

Despite a less pronounced drop compared to its competitors (10.6% compared to 11% for Crédit Agricole and 15% for Société Générale), BNP Paribas remains under pressure.

The American bank Morgan Stanley anticipates a possible continuation of this decline until the election results.

Furthermore, the excellent performance from Santandertaking advantage of the rise in central bank rates and its strategic expansions in the United States and Europe, accentuate BNP Paribas' loss of ground.

THE innovative projects from Santandernotably its collaborations with Apple and Amazondemonstrate an agility and strategic vision that BNP Paribas currently lacks.

In conclusion, Macron's decision caused significant turbulence on the stock market, highlighting the fragility of BNP Paribas and the potential impact of future political choices on the French banking sector.