Live Markets: French shares tumble as government collapses

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06/10/2025 09:34

Adds new blog entry

STOXX 600 down 0.4%

French PM resigns

SocGen, BNP, Cr Agricole fall sharply

Wall St futures higher

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FRENCH SHARES TUMBLE AS GOVERNMENT COLLAPSES

French shares tumbled on Monday after the new PM Sebastien Lecornu resigned from his post, marking another deepening of France's political, and fiscal, crisis.

The CAC 40 .FCHI is down 2%, while an index of French small- and mid-cap stocks .CACMS is lower by 2.9%.

Banks are the biggest laggards. Societe Generale SOGN.PA, Credit Agricole CAGR.PA and BNP Paribas BNPP.PA are all down between 5.3%-7.1%.

Lecornu's resignation came just hours after announcing his new cabinet, after opposition parties threatened to topple his government, and puts France's precarious fiscal position back in focus.

The French news has weighed on broader European stocks, with the pan-continental STOXX 600 .STOXX down 0.4%.

Britain's FTSE .FTSE and Germany's DAX .GDAXI are both down about 0.1%.

In corporate news, France's SEB SEBF.PA, the maker of Tefal pans and other kitchenware, is the biggest laggard, down 20% after it warned on profit following weak demand in the U.S. and Europe.

     Shares in British paper and packaging firm Mondi MNDI.L are down 14% after the company flagged a difficult trading environment. The warnings also weighed on Nordic forestry firms Stora Enso STERV.HE, UPM UPM.HE and SCA SCAb.ST.

Here's your opening snapshot:

(Samuel Indyk)

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EARLIER ON LIVE MARKETS:

EUROPE BEFORE THE BELL: FUTURES STEADY, JAPAN SURGES CLICK HERE

POLITICS DOMINATE MARKETS, FROM JAPAN STOCKS TO BITCOIN CLICK HERE

French politics drags Europe lower https://www.reuters.com/graphics/GLOBAL-STOCKS/mopadgmnkva/chart.png