French elections: CAC 40 heads lower as stalemate sets in
Sunday’s French election result produced no overall winner, and the lack of any developments has put pressure on the CAC 40.
France’s parliament reassembles
France's political landscape underwent a significant shift on Tuesday as left-wing parties gathered at the National Assembly for orientation sessions. These parties emerged from the recent snap legislative elections with the largest number of seats in parliament, marking a notable change in the balance of power.
The election results split the National Assembly into three main blocs, with the leftist New Popular Front coalition taking the lead, followed by President Emmanuel Macron's Ensemble alliance, and the far-right National Rally (RN) securing the third position. This outcome was particularly striking given that the RN had led in the first round of voting.
In the wake of these surprising results, negotiations to form a new government were in full swing on Tuesday. The complex political situation has created challenges for President Macron, who now faces the task of building a workable coalition or finding ways to govern effectively without a clear majority.
Adding to the political intrigue, Macron rejected Prime Minister Gabriel Attal's resignation on Monday. Instead, the president requested Attal to remain in his position temporarily, citing the need "to ensure the country's stability" during this period of political uncertainty. This move underscores the delicate balance Macron is trying to maintain as he navigates the new parliamentary landscape and works to form a government capable of implementing his agenda.
CAC 40 hits one-week low
French markets had made some gains on Monday as the first day of trading after the elections began, but since then they have fallen back.
The main French index, the CAC 40, has slipped back below the 200-day simple moving average (SMA), currently at 7652, and may now head back to the June lows around 7470.
A close below this takes us on to the January low at 7300. Bulls will want to see a close back above the 200-day SMA and then back above last week’s highs around 7720.
CAC 40 chart
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
