Citi Claims French Stocks Have Yet to Reflect Bond Market Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
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Source: MarketWatch
Political Situation in France: Prime Minister Francois Bayrou is expected to lose a vote of confidence for his centrist government on September 8, leading to potential governmental paralysis.
Market Reactions: The French stock market has not fully adjusted to the political risks, while government bonds (OATS) have already reflected this uncertainty.
Yield Spread Increase: The yield spread between OATS and German government bonds has widened to 80 basis points, with predictions it could reach 90 or 95 basis points if Bayrou is defeated.
Potential Snap Elections: A defeat for Bayrou may trigger snap legislative elections in October, further complicating the political landscape in France.
Analyst Views on DAX
Wall Street analysts forecast DAX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DAX is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 46.100
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
