Live Markets: Who's most exposed to France?
10/06/2024 11:15
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STOXX 600 down 0.8%
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CAC 40 roiled by Macron election call
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Wall St futures inch lower
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WHO'S MOST EXPOSED TO FRANCE?
While the big gains for right-wing parties in this weekend's EU vote were broadly in
line with expectations, the real shocker was Macron's gamble to call a snap parliamentary
election after a bruising loss to Le Pen's far-right group.
French assets are clearly at the epicentre of the sell-off gripping markets this morning.
But for equity investors exposed to a myriad of stocks with operations in France, the key is
figuring out who is most exposed.
"Sentiment on OAT and French exposed/domestics stocks like banks and utilities may be the
most impacted by near-term political uncertainty. With the French election taking place less
than a month ahead of the Paris Olympics, a lot of noise is to be expected, which could also
impact business and consumer sentiment," writes Barclays strategist Emmanuel Cau.
According to the UK bank, communication services and real estate are also among the French
sectors with the biggest domestic exposure, while healthcare and materials are the least.
Builders are another sector to watch this summer. Vinci SGEF.PA , a concessions and
construction group, is the second top CAC 40 .FCHI faller after bank Societe Generale
SOGN.PA .
Jefferies notes Le Pen's proposed policies include building 100,000 social homes per year,
excluding smaller homes from energy renovation, stopping energy requirements for rentals,
abolishing a real estate wealth tax and offering interest-free loans for young couples.
SIG Group SIGNC.S has an around 60% core profit exposure to France. Also exposed are Saint
Gobain SGOB.PA , Kingspan KSP.I , and Heidelberg HEIG.DE , per Jefferies.
In luxury, Hermes HRMS.PA has a 9% sales exposure to France, LVMH LVMH.PA 8%, followed
by Prada 1913.F and Moncler MONC.MI at 7% and 6% respectively, according to UBS.
(Danilo Masoni)
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MONDAY'S OTHER LIVE MARKETS POSTS
HOW TO PLAY THE MARKET POST-PAYROLLS - UBS CLICK HERE
FRENCH NAMES DRAG ON EUROPEAN STOCKS, BANKS SUFFER CLICK HERE
FUTURES SIGNAL LOSSES AS MARKETS DIGEST FRENCH SNAP ELECTION CLICK HERE
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French sector exposures https://tmsnrt.rs/3RmNjzL
Builders french exposure https://tmsnrt.rs/3XcxOhL
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