The announcement of her prime minister’s resignation France Sebastian Lekorni caused the fall of shares at the Stock Exchange in Paris.
Bank shares in France retreated immediately after Announcement of the French Prime Minister’s resignationwhen opening. Specifically, the shares are currently: BNP Paribas (-4.15%), Société Générale (-5.51%) and Crédit Agricole (-4.35%). The CAC 40 is currently receding by 1.61%, after falling 2% immediately after the resignation announcement.
The decline in shares is attributed to “100% in this political decision,” said Alexandre Baradez, an analysis manager at IG France.
Bank shares did not withstand the sudden increase in French lending rates, which passed from 3.51% yesterday (5.10.2025) to 3.61% a few minutes after the announcement.
“The French, but also the European bank stocks are in red because they are holding French debt. With the increase in interest rates on the ten -year bonds, investors redefine their risk, “explains Alexandre Baradez.
“If the 3.60% threshold is overcome, French debt can be exposed to mass attacks, which will increase market nervousness,” warns Antoine Andreani, Director of Research at XTB France.
The spread (a difference between German and French lending rates in the markets) reached 89 basis points shortly after the announcement of the resignation of Lekorni, at the highest level since January, compared to 81 basis points yesterday.
“Lecorne’s resignation sinks the political scene into uncertainty. Investors are afraid of a domino phenomenon in economic and fiscal policy, “commented Antoine Andreani.