Today fell (26.8.25) French and more generally shares In European stock markets Due to the political uncertainty caused by the news that French Prime Minister Bairou will call for a vote of confidence from the French Parliament.
Specifically, the CAC 40 stock index fell 1.9% to the Paris Stock Exchange, while the Pan -European Stoxx 600 fell 0.8%. The British FTSE 100 fell 0.6% as the market was reopened by the holiday and after data showed that food prices were increasing at a fastest pace since February 2024, according to Bloomberg. The Athens Stock Exchange fell close to 1.1%. The DAX index in Frankfurt declines close to 0.7%.
Bairo’s call for a vote of confidence may overthrow the French government as early as next month. The far -right national alarm, the left -wing France and the Greens said they would vote against the September 8th proposal, while the Socialists said they would not support the government.
“I see this as a blatant return of the risk premium to French assets,” said Andrea Tounai, head of sales at Saxo Banque France. “At the moment, the market simply recognizes the fact that France is in a deep political crisis in the midst of a difficult economic scene.”
The yield on the 10 -year French bond increased by nine base points to 3.51% after the plan announced Monday, leading to losses in the global bond market. The counterpart was steadily negotiated on Tuesday morning. The performance difference between the 10 -year French bond and the German widened by three basis points at 78, from 70 at the end of last week, and is heading for the highest closure since April.
“There has been a great deal of complacency in markets regarding the state of the budget in France,” said Vincent Juvyns, head of investment strategy at ING in Brussels. “What is already clear is that in one way or another, Blue Chips from the CAC 40 will be called upon to contribute further, which will affect the index.”
European stocks find it difficult to overcome the historical high that occurred in March amid geopolitical concerns and concerns about economic growth. The attention is also focused on US President Donald Trump’s move to remove the federal bank governor Lisa Cook on the grounds that he was falsified housing loan documents.
Among the individual shares in Europe, Commerzbank AG fell up to 6.3% after Bank of America Corp. analysts. They downgraded the German bank’s credit rating to a neutral underpost, saying that its valuation seems stretched.
Orsted A/S rose 2% a day after sinking to a historic low, as executives plan to reassure shareholders after Trump’s decision to stop one of the two winds on the US.