Volatility has surged as the cost-of-living protests that spiraled into violence in France have spread to other parts of Europe in recent day. Stocks, bonds, and currencies across Europe have been impacted as investors assess the political unrest.
This week's has only added to the selling pressure that was sparked weeks prior, when concern over France's growing fiscal deficit hit a boiling point and led fixed-income investors to dump bonds in the nation.
French stocks dropped more than 1% on Tuesday as investors weighed political instability and recent calls from student and activist organizations to resume protests. The CAC 40 index is down 10% from its August peak, indicating that French-listed stocks remain in correction territory.
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Here's what you need to know:
First, France unveiled its 2027 budget bill last Thursday, drawing investors' attention to the country's debt, which is expected to rise to an all-time high of 119% of GDP this year.
Second, France said it planned to sell a record amount of bonds next year, stoking fears among fixed-income investors that the nation's borrowing is becoming unsustainable.
First, France unveiled its 2027 budget bill last Thursday, drawing investors' attention to the country's debt, which is expected to rise to an all-time high of 119% of GDP this year.
Second, France said it planned to sell a record amount of bonds next year, stoking fears among fixed-income investors that the nation's borrowing is becoming unsustainable.
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