In a recent interview, Marija Veitmane, senior strategist at State Street, argues that institutional investors are turning away from French equities because of the uncertainties surrounding the early elections, preferring to position themselves in the Italian market, which is considered to be more attractive, particularly in the financial sector.

This trend is partly explained by the sectoral composition of the indices in each country. In France, the industrial and consumer discretionary sectors, which are particularly vulnerable in a weakened economic environment, are prompting investors to reduce their positions.

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