Resignation of Lecornu: The Paris Stock Exchange Plummets after this political Shock

FALL: After the announcement of Sébastien Lecornu’s resignation, the Paris Stock Exchange fell sharply this Monday 6th October

here Paris Stock Exchange fell sharply by more than 2% on Monday around 10 a.m., after the announcement of the resignation of Prime Minister Sébastien Lecornu . The head of the government submitted his resignation to Emmanuel Macron, who accepted it, the Elysée announced in a press release on Monday.

Appointed on September 9, Sébastien Lecornu was under fire from opponents and the right after revealing part of his government on Sunday evening.

The cost of the French loan rises to ten years

After sliding by more than 2% shortly after the announcement of this resignation, the flagship CAC40 index lost 1.91% at 10:30 a.m. The news pushed up the cost of the ten-year French loan, which rose momentarily to 3.61% before falling to 3.57% at 10:30 a.m., up seven basis points from the last close.

“If the 3.60% threshold is crossed, French debt could be exposed to massive attacks, amplifying the nervousness of the markets”, worried Antoine Andreani, who directs research at XTB France.

The political scene “in uncertainty”

The CAC40 index, in cautious decline before the resignation of the Prime Minister, ended slightly higher on Friday, gaining 0.31%, or 24.91 points to settle at 8,081.54 points, less than a hundred points from its previous record dating from March.

Sébastien Lecornu’s resignation plunges the political scene into uncertainty. Investors fear a domino effect on economic and budgetary policy, warned Antoine Andreani. Among the stocks most affected were BNP Paribas (-6.00%) and Crédit Agricole (-5.56%).

The Seb group collapsed by more than 21% to 52.05 euros after the small household appliances group, manufacturer of Tefal, lowered its annual profit forecast due to weak demand.