European Stocks Stumble Amid Political Turmoil and Sector Slumps
European stock markets were hit by political chaos in France and sector downturns, with healthcare and bank stocks pulling down the market. Despite a brief luxury sector rebound, ongoing instability and the absence of a French government heightened market volatility, impacting budget expectations and investor confidence.
European stocks took a hit on Tuesday, weighed down by underperformance in healthcare and banking sectors, while a rebound in France's luxury sector slightly mitigated losses. The pan-European STOXX 600 index declined by 0.2%, retreating from record highs it had reached in the previous session.
Spanish stocks cooled by 0.2% after nearing an 18-year high, while French blue-chip stocks saw gains evaporate, closing flat following political turmoil. This upheaval was sparked by Prime Minister Sebastien Lecornu's sudden resignation, prompting concerns over France's future budget trajectory.
Amidst calls for President Emmanuel Macron to resign or call an election, market uncertainty grew, with financial analysts emphasizing the critical nature of the 2026 budget. In positive news, the luxury sector saw a boost, but healthcare stocks, including Denmark's Novo Nordisk and Germany's Bayer, contributed to market drag.
(With inputs from agencies.)
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