European stock market open: France unrest weighs on shares
Shares fell at Monday’s open as unrest in France added to concern over the country’s finances and political stability. The broader Stoxx 600 was down over…
European stock market open trading fell on Monday as unrest in France added pressure to markets already watching the country’s finances and political uncertainty. The broader pan-European Stoxx 600 was down over 0.6% at the start of the session, while US futures rose after last week’s heavy losses.
France’s CAC 40 traded 0.5% lower, and German shares led regional declines. The market reaction puts attention on whether political turmoil and rising borrowing costs will deepen investor concern about France’s fiscal outlook.
Authorities counted about 550,000 people at Saturday’s nationwide marches against rising living costs and the state of French schools. Demonstrations descended into rioting and looting in Paris, Lyon, Marseille, Bordeaux and other cities, according to Yahoo Finance.
The unrest has also hit businesses. Carrefour said 50 of its stores were targeted by looters, and its shares fell more than 2%. Alexandre Bompard, the retailer’s chief executive and head of French retail federation FCD, said about 1,500 shops were affected, with damage running into hundreds of millions of euros.
“the cost of the repairs will run to well over ten million euros,” Bompard said of Carrefour’s losses.
French debt concerns persist
French borrowing costs rose as a divided parliament debated the 2027 budget. The 10-year government bond yield stood at 4.86%, after reaching its highest level since 2002 earlier this month.
The gap between French and German government borrowing costs, a gauge of investor concern, stood at 143.5 basis points. It had topped 150 in early October, its widest level since the euro debt crisis, Yahoo Finance reported. InvestingLive separately said the spread had widened to around 145 basis points.
InvestingLive said the protests added uncertainty to France’s difficult political and fiscal situation ahead of next year’s presidential election. The concern it identified was whether growing public discontent could weaken the government’s ability to advance fiscal reforms.
That matters beyond bond trading. Higher borrowing costs can reinforce market unease about France’s public finances, while looted shops and repair bills put immediate pressure on retailers and local businesses. For investors tracking European shares, the spread between French and German debt is one market signal of that concern.
Other major indexes also traded lower. The UK’s FTSE 100, Italy’s FTSE MIB and Spain’s IBEX 35 were between 0.4% and 0.6% below Friday’s close. Germany’s DAX dropped over 0.8%, while the Netherlands’ AEX rose more than 0.4%.
The euro slipped 0.2% against the US dollar to around $1.121 and fell 0.2% against the British pound to roughly £0.841. Yahoo Finance said the currency had reached its lowest level against the dollar since mid-May 2025 and against the pound since early June 2025 last week, with France’s debt concerns and a stronger US dollar weighing on it.
Officials face pressure after unrest
Interior Minister Laurent Nuñez said 2,400 people were arrested. Reports put the number of injured police officers, gendarmes and firefighters between 500 and nearly 1,000.
Nuñez acknowledged a lack of anticipation and loss of control in some cities, and offered to resign. President Emmanuel Macron refused, his office said on Monday, arguing security forces needed unbroken command.
Business leaders also called for action. Lacoste chief executive Thierry Guibert urged the state on social media to protect businesses and staff, while Intermarché chief Thierry Cotillard said he was deeply angry. Patrick Martin, head of employers’ group Medef, called the looting unacceptable, according to Yahoo Finance.
Prime Minister Sébastien Lecornu was set to chair a crisis meeting on Monday, while Commerce Minister Serge Papin was due to meet trade federations, banks and insurers. Moody’s is scheduled to review France’s Aa3 credit rating, which carries a negative outlook, on Friday.
Unions have called a national strike for 5 November, adding another point of focus as markets assess the political and fiscal strain.
Source: investinglive.com
