Stock markets in Europe opened to a slight rise.
In France, the government received a vote of no confidence in the parliament on Wednesday, as expected. President of France Emmanuel Macron has started the search for a new prime minister. Michel Barnierin the government will continue to operate as the Ministry of Supply after the vote of no confidence.
The political crisis in France has weighed on the euro in recent weeks and raised interest rates on French government bonds. From the market’s point of view, the situation has not particularly changed today. As a counterweight to the widespread uncertainty in Europe, global markets are now supported by strong confidence in the US economy, and global investors therefore tolerate risks reasonably well in Europe as well.
The resistance of the market is indicated by the fact that in France, for example, the shares of banks that act as fever gauges have opened in the morning with a clear rise. BNP Paribasin the share price was up 2.35 percent and Societe Generalin share price up 3.3 percent. Credit Agricolen the share price was up 2.3 percent. The Paris Cac 40 index was up 0.3 percent.
Banks are supported by the fact that today the risk premiums of French bonds against Germany have decreased slightly and the values of the bonds are rising.
The broad Stoxx 600 index was up 0.1 percent after trading for a quarter of an hour. Among the industries, banking shares are in the strongest increase of 0.7 percent on average. The prices of shares in the tourism industry are also rising at the same pace. The most obvious decrease of 0.4 percent is the share prices of real estate investment companies.