European Markets Rebound Amid French Political Uncertainty

Bridgette Randall
24 Jun, 2024
Frankfurt

European markets headed higher as investors looked ahead to the first round of the French election this weekend, and bond yields showed elevated stress. 

Early polls indicate French President Emmanuel Macron's party is likely to lose its grip on power amid growing uneasiness about immigration, the high cost of living, and economic uncertainty. 

Meanwhile, investors are worried that the rise of far-right parties in the French parliament is likely to alter the government's domestic economic priorities and plans to lower the budget deficit to meet the 2% target set by the European Union. 

On the economic front this week, Germany and France are scheduled to release their jobless rates, and the central banks of Sweden and Turkey are expected to hold their rates steady.

In addition, France, Italy, and Spain are set to release their inflation data ahead of France’s first-round election on June 30.

 

Europe Indexes and Yields

The DAX index increased by 0.4% to 18,242.31; the CAC-40 index rose by 0.5% to 7,669.07; and the FTSE 100 index rose by 0.4% to 8,270.03. 

In the previous week, the DAX index jumped 0.2%, the CAC-40 index rose 0.9%, and the FTSE 100 index advanced 1%. 

The yield on 10-year German bonds edged lower to 2.41%. French bonds inched lower to 3.13%; the UK gilts edged lower to 4.08%; and Italian bonds increased to 3.91%.

The euro edged lower to $1.072; the British pound inched higher to $1.266; and the U.S. dollar weakened to 89.30 Swiss cents.

Brent crude increased $0.30 to $85.30 a barrel, and the Dutch TTF natural gas fell by €0.10 to €33.86 per MWh.

 

Europe Stock Movers

Argenx soared 6.4% to €395.60 after the Belgian drug company won approval from the U.S. drug regulator for its treatment for chronic inflammatory demyelinating polyneuropathy, a condition that causes chronic weakness in muscles. 

Prudential PLC surged 6.6% to 753.20 pence after the UK-based insurance company launched a $2.2 billion stock repurchase program. 

GSK plc increased 0.6% to 1,608.50 pence after a Japanese drug regulator approved the company's Omijara for the treatment of myelofibrosis. 

Valneva SE rose 7.5% to €3.34 after Health Canada, the drug regulator, approved the company's IXCHIQ for the treatment of chikungunya virus in adults. 

Safran SA gained 1.6% to €205.80 after the company entered into an exclusive discussion to acquire Preligens for an enterprise value of €220 million. 

Preligens is the developer of artificial intelligence technology to analyze defense and intelligence industry data.