France Stocks Drop on Fiscal and Geopolitical Risks
The CAC 40 fell 1.2% to close at 7,769 on Wednesday, reversing the previous session’s gains and hitting its lowest level since March as geopolitical tensions and concerns over France’s fiscal outlook weighed on sentiment. Oil prices rose on renewed supply risks, raising inflationary pressures, while global yields resumed their rally. Meanwhile, ECB Governing Council member Emmanuel Moulin said France’s bond-market situation is serious but does not warrant intervention. Concerns over the government deficit persisted, weighing on credit-sensitive stocks. BNP Paribas shed 3.9% and Societe Generale lost 5%. Industrials also declined, with Safran down 3% and Schneider Electric losing 2.3%. On the economic front, France’s trade deficit narrowed to €6.1 billion in August from a revised €6.6 billion in July, beating expectations for a €6.5 billion shortfall. Luxury stocks outperformed, with LVMH up 0.7%.
2% to close at 7,769 on Wednesday, reversing the previous session’s gains and hitting its lowest level since March as geopolitical tensions and concerns over France’s fiscal outlook weighed on sentiment. Oil prices rose on renewed supply risks, raising inflationary pressures, while global yields resumed their rally. Meanwhile, ECB Governing Council member Emmanuel Moulin said France’s bond-market situation is serious but does not warrant intervention. Concerns over the government deficit persisted, weighing on credit-sensitive stocks.
9% and Societe Generale lost 5%. 3%. 5 billion shortfall. 7%.