Citigroup: French banking sector will maintain a certain Fluctuation in the short term

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Gold Ten data on July 1st, Citigroup said that the French banking sector will remain volatile ahead of the second round of French parliamentary elections. Previously, the results of the first round of parliamentary elections in France were consistent with opinion polls. Analyst Azzurra Guelfi wrote: Our analysis of interest rates and stock strategists seems to indicate that the market currently reflects the deadlock in the elections. Since the end of May, the implied cost of equity capital of French banks has risen by about 330 basis points. Given the expectations of deteriorating economic growth and integration process in Europe, coupled with greater fiscal risks and higher financing costs, this has led to a decline in return on equity and return on capital.

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