FRANCE: Prices of shares in France come under strong pressure at the mid-session as market participants worry that the uncertain outcome of Italy's general elections could thrust the eurozone back into crisis

Record ID: 644428

  • Title: FRANCE: Prices of shares in France come under strong pressure at the mid-session as market participants worry that the uncertain outcome of Italy's general elections could thrust the eurozone back into crisis
  • Date: 26th February 2013
  • Summary: PARIS, FRANCE (FEBRUARY 26, 2013) (REUTERS) VARIOUS OF KBL RICHELIEU FUND MANAGER JEREMY GAUDICHON WORKING AT DESK VARIOUS SCREENS (SOUNDBITE) (French) KBL RICHELIEU FUND MANAGER JEREMY GAUDICHON SAYING: "This very confused situation in Italy is clouding things a little. Italy needs a stable political situation to carry out the reforms it needs to cut its deficit and debt. Today, the situation is very confused there. We don't know what coalition is going to take power and we don't know to what extent they will be able to continue reforms." SCREENS (SOUNDBITE) (English) KBL RICHELIEU FUND MANAGER JEREMY GAUDICHON SAYING: "The market reacts very badly this morning. Actually, the uncertainty in Italy gives a very bad signal to the market. As we know, Italy needs to implement reforms to correct the trajectory of the debt and to do that, Italy needs political stability. And with the result of this election, we are not sure about this." VARIOUS TRADING ROOM
  • Embargoed: 13th March 2013 12:00
  • Keywords:
  • Location: France
  • Country: France
  • Topics: Economy,Politics
  • Reuters ID: LVA4ZJJQ513DYW76KT9W8LGWI3NM
  • Story Text: Share prices in France came under strong pressure on Tuesday (February 29), hit by fears the uncertain outcome of Italy's general elections could propel the eurozone back into a crisis many were hoping it was recovering from.
    By 1230 GMT, the CAC-40 index of leading French stocks stood at 3641.49, a loss of 2.15 percent. That was in line with the falls posted in Spain, but well up from the massive 4.32 loss of Italy's main blue-chip index, the MIB.

    "This very confused situation in Italy is clouding things a little. Italy needs a stable political situation to carry out the reforms it needs to cut its deficit and debt. Today, the situation is very confused there. We don't know what coalition is going to take power and we don't know to what extent they will be able to continue reforms," said Jeremy Gaudichon, Fund Manager at KBL Richelieu.
    The euro briefly touched a seven-week low against the dollar to trade near $1.30 after no clear majority emerged from the vote, raising the prospect of weeks of political uncertainty and potentially another election later in the year.
    Yields on 10-year Italian government bonds jumped 45 basis points to 4.82 percent while Italy's main stock market index tumbled five percent with shares in some of the country's major banks down over 10 percent.
    Italy's centre-left bloc led by Pier Luigi Bersani narrowly won control of the lower house but no party or coalition appeared to be in a position to take a majority in the equally powerful Senate. A party led by the anti-establishment comic Beppe Grillo gained more than 25 percent of the vote.
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