(BFM Stock Exchange) – The Parisian index falls this Monday, reacting to a climate of political uncertainty reinforced by the announcement of the resignation of the Prime Minister.

The CAC 40 suffers greatly this Monday. The Parisian index drops by 2% around 9:45 am this Monday, October 6, 2025. This while the other Parisian markets are experiencing a fairly calm session. London lost 0.2% and Frankfurt 0.3%.

The Parisian index is in the tough after the resignation of Prime Minister, Sébastien Lecornu, announced on Monday.

A sign that the situation of France worries, the euro also falls. The motto of the euro zone loses 0.7% against the dollar at $ 1.166.

The Elysée announced in the morning the departure of the tenant of Matignon in the aftermath of the presentation of his government. The composition of the executive announced by Sébastien Lecornu has suffered a volley of criticism from the opposition parties.

Marine Le Pen, deputy for the national rally, spoke of a “pathetic” choice while Jean-Luc Mélenchon, figure of rebellious France, declared that the countdown “to drive them all (had) started”. Several LR leaders have expressed their willingness to get out of the government.

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“A surprise”

“This resignation remains a surprise, especially in view of the position of LR (initially inclined to participate in the government, editor’s note)”, explains Alexandre Baradez, chief of market analysis, at IG France.

“The risk is that there is a new dissolution and legislative elections, a long process which would take months and repel the budget. However, the budgetary risk is the main risk that in mind the market. The more political instability, the more this risk increases,” he continues.

Palpable tension is observed on French debt. A sign of investor stress, the rate difference between French debt to 10 those of the same maturity of Germany reaches 87 base points (0.87 percentage points) against just over 80 points previously.

On the side of values, the banks unscrew. Société Générale lost 7.3%, BNP Paribas lost 5.3%and Crédit Agricole 5%.

Banks remain the main adjustment variable for the market after the revival of bond tensions because French banks have French obligations in their balance sheet, “explains Alexandre Baradez.

“Besides, fear fear that with ambient political uncertainty, France’s credit note will still be lowered, especially during the next journals by S&P and Moody’s,” he continues.

“Banks are however solid, are we not on a crisis as in 2011-2012”? Ensures the expert. Another sharp decline: Thales. The defense and technology group lost 4.6%.

The political hazard in France could delay the adoption of a finance law and therefore of the defense budget for 2026. This can constitute a source of uncertainty for the market.

At the end of August, Jefferies recalled that the previous budget (that of 2025) had been adopted with a significant delay, which had led to fairly “slow” controls in the defense activities of Thales, in the first quarter of 2025. France represented, in 2024, a little less than a quarter of the control of Thales.