European Stocks Advance in Sign French Turmoil Is Priced In
European stocks gained after the French government was toppled by a no-confidence vote late Wednesday as much of the impact was already priced in.
(Bloomberg) -- European stocks gained after the French government was toppled by a no-confidence vote late Wednesday as much of the impact was already priced in.
The Stoxx Europe 600 Index was up 0.3% at 8:30 a.m. in London, with travel and leisure stocks and banks leading the gains as French names including BNP Paribas SA, Societe Generale SA opened higher. The French blue-chip index CAC 40 rose 0.6%.
European stocks look attractive compared to their US peers after several months in which political risks and concerns about economic weakness have weighed on valuations. French stocks in particular have taken a beating as the government was unable to find common ground on its 2025 budget.
“Between yesterday and today we’ve seen relatively contained reaction from the market,” said Marie Jacot, Edmond De Rothschild Asset Management France CEO. “We are starting to see clearly some good entry points for French stocks.”
Prime Minister Michel Barnier used a constitutional tool to push through parts of the budget without a parliamentary vote earlier this week. That led the far-right National Rally party and the left-wing coalition to push ahead with a no-confidence motion against the government.
Among other single stocks, Equinor ASA and Shell Plc are to combine their UK offshore oil and gas assets to form a new company, which will be the UK North Sea’s biggest independent producer. Elsewhere, Future Plc shares jumped as its revenues for the full year met estimates. Aurubis AG also gained after posting robust full-year numbers. Meanwhile, Safran SA was among the worst performers on the European benchmark following disappointing targets.
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First Published:6 Dec 2024, 12:27 AM IST
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