French Stocks Fall on Unrest Concerns

The CAC 40 fell 1.2% to 7,865 on Monday, reversing the previous week’s gains as mounting civil unrest and deepening political turmoil heightened concerns over France’s already strained public finances. The protests began last month in high schools in working-class northern suburbs of Paris, with students voicing concerns over the cost of living and dissatisfaction with the education system. Demands for increased public spending come as France faces mounting pressure to rein in its rapidly growing debt burden, complicating efforts to address social grievances without further straining public finances. The clashes also come at a critical juncture ahead of the presidential election in April. Financial stocks were among the biggest laggards, with BNP Paribas down 2.4%, Crédit Agricole falling 2.3% and Société Générale losing 2.3%. Notable decliners also included L’Oréal (-1%), LVMH (-1.7%) and Airbus (-1.8%).