AFP/Paris
The Paris Bourse closed lower yesterday in a low-key session, with many markets around Europe and in New York closed for public holidays.
Paris’ leading CAC 40 index ended the day 0.50% down at 5,100 points compared with Friday’s close, with extremely low volumes worth less than €700mn ($768mn) traded.
Most of Europe’s major markets – including London and Frankfurt – remained closed during the yesterday holiday, with Wall Street similarly taking Memorial Day off.
Madrid’s stock market was open for business, the day after voters in municipal and regional elections abandoned traditional parties to back populist protest rivals, with the Ibex-35 index closing 2.01% lower at 11,322.30 points.
The CAC 40 a lost ground due to “the combination of a holiday and an empty economic calendar,” said Christopher Dembik, economist at Saxo Banque.
But though Renta 4 analyst Angel Perez told AFP that in Spain investors had reacted cooly to anti-austerity parties topping polls in Barcelona and possibly taking power in Madrid, the real reason behind yesterday’s dip were hardening negotiations between Greece and its creditors over €7.2bn in blocked bailout aid.
Cash-strapped Athens is resisting austerity and reform demands from creditors to free up the money, which Greece needs to finance a series of debt repayments to the International Monetary Fund—and thus avoid possible default that could drive the country from the euro.
“Today’s fall was above all due to the situation in Greece, which may not be able to honour its payments to the IMF, and is making the market a bit nervous,” said Perez, who acknowledged the spectre of major political change following Sunday’s elections “may create uncertainty in Spain for the short-term.”
