PARIS (Reuters) – The main European stock markets posted modest gains on Thursday, at the opening of a session marked by censorship from the French government the day before, which fueled political uncertainty around the second economy in the euro zone.
In Paris, the CAC 40 fell by 0.05% to 7,299.92 points around 08:05 GMT. The Dax in Frankfurt strengthened by 0.05%, while the FTSE in London declined by 0.02%.
The pan-European FTSEurofirst 300 index gained 0.05%, the EuroStoxx 50 gained 0.07% and the Stoxx 600 grew by 0.09%.
The French government was overthrown on Wednesday by a motion of censure, an unprecedented event since 1962 which opens a new period of major political uncertainty.
“This political crisis opens the door to three potential scenarios: the rapid formation of a new government, the establishment of an interim executive, or even the creation of a technocratic government,” summarize Natixis analysts.
“Each of these scenarios carries risks of political and institutional instability.”
This uncertainty weighs on the rest of European assets, while the German economy is at a standstill in a context, once again, of political uncertainty after the fall of the ruling coalition.
Adding to the bad news, industrial production fell unexpectedly in France in October.
Furthermore, industrial orders in Germany fell less than expected in October, although pressure on the secondary sector remains significant.
In terms of values, Safran fell 3.7% after publishing its forecasts for 2025.
(Written by Corentin Chappron, edited by Augustin Turpin)
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