French Government Shakeup Sends Markets Tumbling
European stocks saw a decline, notably in France, following Prime Minister Sebastien Lecornu's resignation. The STOXX 600 index dropped 0.4%, with French stocks falling 2%. The resignation led to increased uncertainty in European assets, affecting banks and mid-cap stocks. Meanwhile, oil and gas gained amid higher oil prices.
European stock markets suffered a setback on Monday as French equities took a particular hit following the unexpected resignation of France's Prime Minister Sebastien Lecornu. This abrupt political change has led to heightened uncertainty and caution regarding European assets.
The pan-European STOXX 600 index experienced a 0.4% decline, while French stocks fell by 2%—marking their most significant one-day drop since August. This drop occurred after Lecornu announced his resignation just hours after forming a new cabinet, shaking investor confidence in France's political stability.
Despite this turmoil, the oil and gas sector saw a slight uplift due to an increase in oil prices, attributed to OPEC+'s restrained production hike for November. Meanwhile, other stocks experienced mixed reactions, with notable declines in financials and consumer goods across the European market.
(With inputs from agencies.)
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