LIVE MARKETS-Déjà Vu for the CAC 40

By Reuters News

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DÉJÀ VU FOR THE CAC 40

France has been at the top of investors' minds in recent weeks as concerns over the country's fiscal trajectory and next year's presidential election unsettle markets.

Its bonds were in the spotlight. The 10-year bond yield rose to its highest in 24 years, while the yield gap to Germany hit its widest since the euro zone financial crisis.

Less in focus was the country's stock market, although the blue-chip CAC 40 .FCHI was down over 11% from its August peak.

Interestingly, that is almost the exact same drawdown as seen from the peak in June 2024 after Emmanuel Macron called a snap election, in almost the exact same number of days.

Should 2026 follow the 2024 playbook, French stocks could be in for a promising couple of weeks.

https://www.reuters.com/graphics/FRANCE-STOCKS/gkplebgdyvb/chart.png

(Samuel Indyk)

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