European Stocks Advance, Look Past French Political Turmoil
European stocks gained after the no-confidence vote late Wednesday toppled the French government led by Prime Minister Michel Barnier.
(Bloomberg) -- European stocks gained after the no-confidence vote late Wednesday toppled the French government led by Prime Minister Michel Barnier.
The Stoxx Europe 600 Index was up 0.3% at 8:30 a.m. in London, with the banking sector leading the gains as French big names BNP Paribas SA, Societe Generale SA opened higher. The French blue-chip index CAC 40 rose 0.6% as markets seem to have priced in most of the risk from the political standoff.
French President Emmanuel Macron is now seeking a new prime minister after the far-right National Rally party and the left-wing coalition pushed ahead with a no-confidence motion against the government over a budget dispute.
“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.”
European stocks had been lagging US peers following a record high in September as concerns about potential US tariffs, a weaker regional economy and geopolitical risks continue to mount. The political turmoil in France has added to investors’ woes, with the government unable to find common ground on the 2025 budget.
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. The shares of the two companies rose 0.1% and fell 0.7% respectively on the news. Elsewhere, Future Plc shares jumped as its revenues for the full year met estimates.
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First Published:6 Dec 2024, 12:27 AM IST
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