European Shares Seen Lower As Violence Erupts At France Protests
Violent protests and looting pushed French bonds higher as investors worried the unrest could deepen fiscal strain and pressure the government to spend more.
- On Tuesday, European stocks dropped nearly 1% as political unrest in France intensified, with the 10-year OAT yield surging 66 basis points to 4.98%, marking a 24-year high.
- France faces investor scrutiny due to high debt levels and political gridlock that complicates fiscal reform. Economists characterize the bond sell-off as an "acute symptom" of global instability affecting sovereign markets.
- The CAC index is down 10% from its August peak while the EUR was valued at $1.12 on Tuesday. Thierry Wizman, a global FX and rates strategist at Macquarie Group, warned that "deposit flight" continues from France.
- Market volatility spread continent-wide, dragging the EURO STOXX down 7% from its August peak as global tech stocks faced pressure from valuations concerns and turmoil in South Korea.
- South Korean AI firm Elice dropped 32% on its first day of trading Tuesday, igniting a risk-off move that spread into the US chips sector where Micron and Sandisk each fell 3%.
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245 Articles
International investors are currently more critical of the country than Italy or Greece. French government bond yields, a risk indicator, have been at the highest level since 2002.
European shares fell after the start of trading. Investors expressed concerns that protests in France will slow down efforts to cut spending. The pan-European STOXX Europe 600 index, which tracks trading on stock exchanges in Britain and selected EU countries, was down 0.66 percent at 635 points after 09:30 CEST.
European stock markets fell yesterday as bond yields jumped.
Al Bawaba
albawaba.netOver $1,121 billion — Insurance costs of stolen luxury brands in France riots
ALBAWABA - Riots erupted in France over the high cost of living and the deterioration of education. Protesters broke into shops, including luxury brands such as Louis Vuitton, Hermes, and Sephora...
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