The European stock markets ended up on Monday (8), while the French reference index also rose, as investors kept calm during the period before a vote of confidence in this Monday, which led to the dismissal of the country’s fifth prime minister in three years.
French Prime Minister François Bayrou lost a vote of confidence on Monday at a time when the French economy struggles to control its debt. France will also face its first of many credit recommendation revisions this week.
The Pan-European Stoxx 600 index closed up 0.52%, to 552.04 points.
Despite the gains of the day, the French actions performed lower than the Stoxx 600 so far this year, pressured by the increase in the income of longer deadlines, which reached peaks of several years due to concerns about debt -driven tax spending. [EUR/GVD]
The collapse of the minority government of Bayrou deepens France’s problems, as Europe seeks unity in relation to the Russian War in Ukraine, an increasingly dominant China and commercial tensions with the United States.
“Persistent political uncertainty in the second largest economy in the euro zone may be problematic, but we haven’t got there yet,” said Fiona Cincotta, a senior market analyst at City Index.
“There are still some uncertainties, and this is not being totally priced at the moment, but I don’t think the market is panicked either.”
Most sectors of Stoxx 600 ended in the positive territory, with retail, which rose 1.8%in the lead. The construction and material sector then came, with a 1.7%increase.
The banks sector rose 1.5%, recovering part of last week’s losses, and oil and gas advanced 0.6%, with an increase in global gross oil prices.
On the other hand, the telecommunications sector lost 1.5% and the health fell 0.6%.
In London, the Financial Times index advanced 0.14%to 9,221.44 points.
In Frankfurt, the DAX index rose 0.89%to 23,807.13 points.
In Paris, the CAC-40 index earned 0.78%to 7,734.84 points.
In Milan, the FTSE/MIB index was appreciated of 0.28%, to 41,723.69 points.
In Madrid, the IBEX-35 index recorded a 1.02%increase at 15,002.20 points.
In Lisbon, the PSI20 index was valued 0.65%, to 7,754.11 points.
