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The Vienna Stock Exchange recorded a sharp price drop on the last day of the trading week. The leading domestic index ATX This continued the previous day’s sharp losses It fell 1.93% to 3,534.45 sets. The broader ATX Prime fell 1.83% to 1,774.85 points. The overall European stock market environment was weaker, with uncertainty in France’s political situation causing turmoil in financial markets. After the close, the Euro Stoxx 50 index was still down 1.95% at 4,839.14 points. The weekly decline was about 4.2%. Germany’s DAX index fell 1.44% to 18,002.02 points. This means that the index is still slightly above the 18,000 point mark, temporarily breaking below it for the first time in six weeks. The weekly decline was 3%, the highest since August last year.
The UK’s FTSE 100 index fell 0.21% to 8,146.86 points. The Paris Stock Exchange fell sharply. France’s CAC-40 index fell 2.66% to 7,503.27 points.
Investors are concerned about… French President Emmanuel Macron announces parliamentary elections The right-wing extremist and Eurosceptic party led by Marine Le Pen could be the winner. Commenting on the losses, Pierre Veyret, an analyst at broker ActivTrades, said that political uncertainty in the EU’s second-largest economy is currently causing investors to stay away from French stocks. Adding to this is tension with China. “Investors seem to be deeply concerned about a potential trade dispute between the EU and China,” said market expert Andreas Lipkow.
French major banks under pressure
Fears of a victory for the right-wing populist National Rally (RN) have unnerved stock investors in Paris – with share prices of major French banks such as Societe Generale, BNP Paribas and Credit Agricole particularly under pressure. According to stockbrokers, investors are concerned about a possible national debt crisis if the RN takes over the government. French Finance Minister Bruno Le Maire has also warned that the country could fall into a financial crisis after new elections.
If the Russian Federation actually emerges as the most powerful force in the elections, this would also have consequences, according to financial experts: “This could make the French reform process even more difficult in an already tight budget situation. There would then be no major reform and savings efforts. This means that France is threatened with a further rating downgrade,” Hraba wrote.
The weak sentiment in the French financial sector also spread to Vienna, with bank stocks being sold off: Erste Group and BAWAG fell the most, down 3.3%. Raiffeisen Bank International also fell sharply by 2.7%.
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