The French stock market showed little reaction to the political crisis after Michel Barnier’s government collapsed on Wednesday. The CAC 40 index rose by 0.65% on Thursday morning, following a 0.66% increase the previous day.
Despite Barnier’s ousting after a historic no-confidence vote, the Paris Bourse remained stable. The euro also showed minimal change. The collapse stemmed from a controversial budget that failed to gain support from both far-right and left-wing lawmakers.
Bond Yields and Stocks Remain Steady
French bonds held steady, with the 10-year bond yield at 2.886% Thursday morning. The market seemed to have anticipated the political fallout, as concerns about France’s political future had already begun rising earlier in the week.
The French borrowing costs surpassed those of Greece for the first time. However, stocks showed modest gains, with major banks like BNP Paribas, Credit Agricole, and Societe Generale all seeing positive movement.
