French Political Turmoil Roils European Markets
European shares fell after France's Prime Minister Sebastien Lecornu resigned unexpectedly, with French equities feeling the hardest impact. The STOXX 600 index dropped, and French stocks saw their largest decline since August. Despite challenges, oil and gas sectors improved due to modest OPEC+ production increases.
The unexpected resignation of France's Prime Minister Sebastien Lecornu led European shares to decline, with French stocks notably affected. French equities experienced a 1.6% drop, marking their largest one-day decrease since August. This political shake-up cast a shadow over market sentiment, creating ripples across European assets.
The broader pan-European STOXX 600 index fell by 0.2% after an impressive 2.8% climb last week. French banks were particularly hit hard, with major institutions like Societe Generale, Credit Agricole, and BNP Paribas facing declines between 4.3% and 6.3%. The instability in France contributed to a more cautious approach by investors towards European markets.
Amidst the political upheaval, the oil and gas sector provided a silver lining, witnessing a 1% gain on the back of higher oil prices following OPEC+'s planned production increase. In contrast, SEB and Mondi faced significant drops due to forecast revisions, illustrating varied impacts across sectors.
(With inputs from agencies.)
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