European Markets Tumble After French PM Resignation
European stock markets experienced a turbulent day following the resignation of French Prime Minister Sébastien Lecornu. The French CAC 40 index plummeted around 1.8%, while the broader EuroStoxx 50 index fell by about 0.5%.
At the time of publication, the CAC 40 index stood at 7,945.79 points, reflecting the market's reaction to the political uncertainty. The DAX index also felt the impact, briefly weakening to 24,383.11 points before recovering most of its losses. The EURO STOXX 50 index was at 5,619.40 points, indicating a general decline in European markets.
Lecornu's resignation on Monday exacerbated the ongoing government crisis in France, sparking concerns about the country's high debt levels. This led to an increase in yields on French government bonds and a rise in risk premiums relative to German bonds. The euro also weakened, with the EUR/USD exchange rate at 1.16660. French bank stocks were particularly vulnerable, with some losing more than 5% in the wake of the political instability.
The French CAC 40 index closed significantly lower after Lecornu's resignation, down around 1.8%. The DAX index, while briefly affected, managed to recover most of its losses. Investors remain cautious, with the outcome of the French government crisis and its potential impact on the country's debt levels still uncertain.
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