Rudolph Angler French stock markets remained stable despite the collapse of Prime Minister Michel Barnier’s government. On Thursday, the CAC 40 index rose 0.65% by 10 a.m., following a 0.66% climb the previous day. The euro also remained steady, signaling minimal immediate reaction to the political upheaval.
The CAC 40 opened with slight gains after Barnier’s government, the shortest-serving in France’s modern Republic, fell on Wednesday. The collapse followed a historic no-confidence vote by the National Assembly, triggered by a controversial budget proposal lacking support from both far-right and left-wing politicians.
Modest Market Movements and Banking Gains
French bonds remained stable despite the turmoil, with the 10-year bond yield standing at 2.886% Thursday morning. However, the rise in French borrowing costs earlier in the week—exceeding Greece’s for the first time—suggested markets had already priced in concerns about France’s political trajectory.
The CAC 40 index showed a modest gain of 0.59% by 9:30 a.m. CET, and leading French banks saw notable increases. BNP Paribas and Credit Agricole rose by approximately 2%, while Societe Generale gained nearly 3%, reflecting investor confidence in the financial sector despite political instability.