French stocks fell sharply on Wednesday, with banks suffering heavy losses as the risk premium investors demand to hold French debt rose to its highest level since 2012 amid fiscal and political turbulence and angst over the fate of the new government.
Banks BNP Paribas, Credit Agricole and Societe Generale fell 2-3 percent while the benchmark CAC 40 after was down 69 points, or 1 percent, at 7,125 after losing 0.9 percent the previous day.
There was also some disappointment on the data front as new data showed consumers were more pessimistic about the future general economic situation in the country.
France’s consumer confidence worsened further in November to the lowest level in five months, monthly survey data from the statistical office INSEE showed today.
The consumer sentiment index dropped to 90 in November from 93 in the previous month. Further, the index remained well below its long-term average of 100.
The index measuring consumers’ outlook regarding their financial situation worsened to -13.0 in November from -8.0 a month ago.
Market Analysis
CAC 40 Slides As French Risk Premium Peaks
2024-11-27 09:19:45
