Stocks rise sharply after French elections
Published: Monday, Jul 1st 2024, 10:00
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The Swiss stock market was mostly firmer in early trading on Monday. Traders speak of a "relief rally" following the elections in France.
Although the Rassemblement National won the parliamentary elections there, it did less well overall than feared. This has reduced the risk of a radical change of policy in France, according to the market.
VP Bank believes that the French elections are unlikely to have a long echo on the financial markets. Monetary policy is more important anyway. And the opinion is that the ECB will be more reluctant to cut interest rates than the financial markets were expecting just a few months ago.
Traders are also hoping that the market's weakness in recent sessions has consolidated its level and that fresh money will now flow back into the markets as usual at the start of the quarter and semester.
The leading SMI index was trading 0.8 percent higher at 12,085 points at 09:15. It is thus moving in line with other important stock exchanges in Europe. The Dax in Frankfurt, for example, is 0.9 percent higher and the Footsie in London is up 0.6 percent. In France itself, the leading index CAC 40 even advanced by more than 2.5 percent.
Banks are high up on the share price chart. In addition to UBS (+2.2%), Julius Baer (+1.9%) is also trading clearly higher. There is talk on the market of a countermovement after the banks had been under pressure following the European elections.
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