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Jefferies: The decline in French bank stocks driven by political factors seems too drastic.
Golden Ten Data News on June 17th, GF Securities Group stated in a report that the pullback of French bank stocks seems to be exaggerated. GF Securities compared the reaction of French bank stocks after Macron announced the early election with the reaction of Italian bank stocks during the 2022 election. Analysts said that at that time, Italian bank stocks fell an average of 6% in the first five days, while French bank stocks fell 13%. Analysts said, “We attribute this performance to the market’s belief that Macron’s actions are very risky, as there may be a major reshuffle in the political landscape, especially under concerns of fiscal expansion.” Analysts said that the strong historical stance of right-wing opposition leader Le Pen towards the European Union is another possible reason.