French stocks accelerated their decline after Prime Minister Sebastien Lecornu announced his decision to resign. The fall for the French market turned out to be the strongest since the end of August, Bloomberg noted.

Details

The main stock index of the Paris stock exchange CAC 40 fell more than 2% to 7916.3 points at the moment. The shares of banks in the euro zone, especially French credit organizations BNP Paribas, Societe Generale and Credit Agricole, fell the hardest, Investing.com reports.

The yield premium on French bonds over more reliable German securities rose to the maximum this year, Bloomberg.com writes. The yield on French 10-year government bonds rose by 11 basis points to 3.61%. The premium on French bonds relative to German bonds exceeded 84 basis points. For comparison: at the end of last year the spread rose to 90 points, which was the maximum since 2012, Bloomberg writes.

The European Stoxx 600 was down 0.4% at the moment on Monday, the German DAX was down 0.45%, and the British FTSE 100 hit a record at the beginning of the session before falling 0.3%.

A new round of political crisis

French Cabinet chief Sebastien Lecornu resigned just 3.5 weeks after his appointment and hours after the formation of the government announced by President Emmanuel Macron on Sunday, October 5. The new government composition has been widely criticized, Bloomberg wrote. The departure of Lecornu, a close associate of President Emmanuel Macron, adds to a wave of political turbulence in one of Europe's largest economies, Investing.com noted.

This is the second resignation of a prime minister in France in a month. On September 8, François Bayrou lost his post after a vote of confidence in his government failed in the National Assembly, France's lower house of parliament.

This article was AI-translated and verified by a human editor

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