Stoxx 600 Drops 0.42 Percent as French Unrest Spreads, Yields Surge
(MENAFN) European equities slid again on Tuesday as violent demonstrations that erupted across France over the weekend rattled investors and spread to neighboring countries.
The pan-European Stoxx 600 shed 0.42% to 636.9 points as of 10:30 a.m. local time. Germany’s DAX 40 lost 0.66% to 25,150, Italy’s FTSE MIB 30 retreated 0.59% to 48,803, and France’s CAC 40 slipped 0.31% to 7,845. Spain’s IBEX 35 eased 0.08% to 19,024 points. Outside the eurozone, the UK’s FTSE 100 fell 0.28% to 10,734.
Bond markets showed the sharpest strain. France’s 10-year yield jumped 14 basis points to 4.94%, and the gap between French and German 10-year yields widened to 148 basis points.
The unrest is intensifying and crossing borders, heightening risk aversion across the region. French Prime Minister Sebastien Lecornu ordered local authorities on Monday to enforce partial curfews in select areas. In Italy, truck and semi-truck drivers began blockading road and port entrances in the southern regions to protest rising fuel prices.
US President Donald Trump weighed in at a rally in Kansas on Monday, blaming “migrants, jihadists, and communists” for the turmoil in France. He had earlier said the “very sad situation (…) has to do with immigration, not schools, not anything.”
Paris has announced a special support fund to help local authorities rebuild public property and buildings damaged in the protests.
The euro, meanwhile, held onto its recovery against the US dollar despite the risks, gaining a modest 0.2% to trade at 1.1234.
The pan-European Stoxx 600 shed 0.42% to 636.9 points as of 10:30 a.m. local time. Germany’s DAX 40 lost 0.66% to 25,150, Italy’s FTSE MIB 30 retreated 0.59% to 48,803, and France’s CAC 40 slipped 0.31% to 7,845. Spain’s IBEX 35 eased 0.08% to 19,024 points. Outside the eurozone, the UK’s FTSE 100 fell 0.28% to 10,734.
Bond markets showed the sharpest strain. France’s 10-year yield jumped 14 basis points to 4.94%, and the gap between French and German 10-year yields widened to 148 basis points.
The unrest is intensifying and crossing borders, heightening risk aversion across the region. French Prime Minister Sebastien Lecornu ordered local authorities on Monday to enforce partial curfews in select areas. In Italy, truck and semi-truck drivers began blockading road and port entrances in the southern regions to protest rising fuel prices.
US President Donald Trump weighed in at a rally in Kansas on Monday, blaming “migrants, jihadists, and communists” for the turmoil in France. He had earlier said the “very sad situation (…) has to do with immigration, not schools, not anything.”
Paris has announced a special support fund to help local authorities rebuild public property and buildings damaged in the protests.
The euro, meanwhile, held onto its recovery against the US dollar despite the risks, gaining a modest 0.2% to trade at 1.1234.
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