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Investment Weekly

Political realities bite in France
06 December 2024

    Chart of the week – Political realities bite in France

    Chart of the week – A difficult starting point for US stock valuations

    Are good economics now bad politics? Recent developments in France are a case in point. IMF forecasts show the country’s public finances are on an unsustainable path. But with the French parliament split into three blocs, there is limited political will to find a solution. Although French spreads have moved higher in response, the general market reaction to this week’s events in France has been sanguine. Amid a benign global macro and market backdrop, and with the ECB providing an important backstop, this is likely to be a slow-burn issue rather than the start of a new crisis.

    More from this week:

    Market Spotlight

    • Hedge funds in a higher-for-longer world

    Lens on…

    • Multiple concerns
    • Europe on sale?
    • Asia high yield’s evolution

    Download the full report PDF, 448KB