Stock market: The CAC 40 is collapsing!  Macron’s fault?

On June 10, 2024, the Paris Stock Exchange suffered an unprecedented shock. The CAC 40, a barometer of French economic health, collapsed by 1.5% upon opening. This stock market debacle follows two major events: the surprise victory of the National Rally in the European elections and the dissolution of the National Assembly by President Emmanuel Macron.

A storm invades the Paris stock exchange!

The political tsunami that swept across the French scene did not fail to cause enormous turmoil on the financial markets. From the first minutes of trading, real panic gripped stock market investors. Consequently, the CAC 40 quickly plunged by 1.5%, a dizzying fall of 150.75 points, to settle at 7,851.05 points around 9:25 a.m.

In this turmoil of the stock market, certain sectors were particularly hard hit. Thus, the banks suffered the heaviest losses, like Société Générale, BNP Paribas, and Crédit Agricole. Likewise, companies dependent on concession contracts with the State have not been spared, like Eiffage and da Vinci. The Paris airport manager ADP also suffered the full brunt of this surge, falling 4.29% to 122.60 euros. At the same time, the euro fell significantly against the dollar, losing 0.41% to 1.0757 dollars per euro.

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An explosive political context

This painful stock market correction finds its origin in the political earthquake caused by the results of the European elections. Indeed, the arrival at the head of the National Rally of Jordan Bardella, credited with around 32% of the votes, caused consternation. Worse still, this surge from the far right led Emmanuel Macron to take the radical decision to dissolve the National Assembly! Thus opening the way to early legislative elections.

Emmanuel Macron dissolves the National Assembly

The dizzying fall of the CAC 40 on the Paris Stock Exchange on June 10, 2024 will remain engraved in the annals. It vividly illustrates the interdependence between politics and economics. Emmanuel Macron's decision to dissolve the National Assembly, combined with the rise of the RN, caused an earthquake on the Paris Stock Exchange. Now all eyes are on the next legislative elections.

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