French Stocks Open Sharply Lower

The CAC 40 fell 1.2% to 7,830 on Thursday, reversing gains from the previous session as rising French borrowing costs and political uncertainty weighed on investor confidence. France’s 10-year government bond yield climbed further after surpassing 5% for the first time since 2002, reflecting concerns over the government’s ability to restore public finances amid ongoing political turmoil and planned protests. Investors are also awaiting Moody’s review of France’s Aa3 sovereign credit rating on October 23, with its negative outlook raising the risk of a downgrade that could further increase borrowing costs. On the broader market, European stocks also fell as disappointing results from major US technology companies revived concerns over the profitability of heavy AI investments. Losses in Paris were led by Hermès International, which dropped 7.32%, followed by STMicroelectronics (-3.17%) and Kering (-3.10%).