07/08/2024 – 6:44
By Sergio Caldas
São Paulo, 07/08/2024 – European stock markets are trading higher on Monday morning, reversing losses from earlier in the session, although the French Parliament faces the possibility of a shutdown following the surprising victory of the left in the parliamentary elections over the weekend.
At around 6:25 am (Brasília time), the pan-European Stoxx 600 index was up 0.41%, at 518.71 points.
Yesterday (07), France’s leftist alliance won the most seats in the second round of legislative elections and halted the rise of the far right, with the support of the center. The left, however, did not secure an absolute majority in Parliament, leading analysts to predict that negotiations to form a new French government will be difficult.
The political impasse in France comes after last week’s UK general election, in which the Labour opposition won a historic victory, ending 14 years of Conservative rule.
Today’s agenda is empty, but the focus in the coming days will be on the US, with testimony from Federal Reserve (Fed) Chairman Jerome Powell, new US consumer inflation (CPI) data and the start of the corporate earnings season in the world’s largest economy.
At 6:40 am (Brasília time), the Paris Stock Exchange was up 0.43%. Shares in BNP Paribas, the largest French bank, were up modestly by 0.40% and Société Générale was up 1%.
Elsewhere in Europe, the London Stock Exchange gained 0.26% and Frankfurt 0.48%, while Milan and Madrid rose 0.71% and 0.15% respectively. The Lisbon Stock Exchange was an exception, falling 0.30%.
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