France: Political Instability That Does Not Threaten the Dynamics of European Markets

Implication for Investors

Date:

Canva

Author: Beatriz Zúñiga

The French Prime Minister, Bayrou, lost the vote of confidence earlier this week, leading to the collapse of the incoming French government

The companies of the CAC 40, mostly multinationals, exporters, and with low levels of debt, appear to be relatively protected

Before the vote of confidence, the spread between 10-year government bonds of Germany and France once again approached 80 basis points

According to asset management experts, tensions on peripheral country spreads should be more limited, not justifying an intervention by the ECB

France stands apart from the rest of the eurozone with the highest budget deficit and public debt on an upward trajectory

Experts from Julius Baer, MFS Investment Management, Tikehau Capital, Ostrum AM (Natixis IM), Edmond de Rothschild AM, and Aberdeen Investments share their views