𝑻𝒉𝒆 𝑾𝒆𝒆𝒌𝒍𝒚 𝑴𝒂𝒓𝒌𝒆𝒕 𝑰𝒏𝒔𝒊𝒈𝒉𝒕𝒔 - June 10 to June 16, 2024

Everything that moved the markets this week from France's far right fears, to a major AI partnership, to inflation and Fed.

European Markets in Turmoil Amid French Political Uncertainty

European stocks have experienced significant turbulence, with French markets particularly hard-hit due to rising fears of far-right political influence. This past week marked the worst performance for French stocks since 2022, as investors reacted to the growing possibility of far-right parties gaining access to power.

The political uncertainty has fueled market volatility, leading to widespread sell-offs and heightened investor anxiety. The prospect of far-right influence in France raises concerns about potential shifts in economic policy, regulatory changes, and broader geopolitical implications. Investors worry that such political changes could disrupt economic stability, impact trade relations, and lead to unpredictable policy decisions.

In my opinion, this is a great moment to accumulate European shares. The ECB started cutting interest rates and the fears of France’s far-right may be exaggerated. Even if Macron were to have a far-right prime minister, it remains unlikely that French CAC-40¹ groups would be targeted as they fuel the French economy.

Can French President Macron still be the buffer to the far right?