European stocks fell on Monday following the sudden resignation of France’s Prime Minister, Sebastien Lecornu, which triggered renewed political uncertainty across the region.
The pan-European Stoxx 600 slipped 0.4% around 9:05 a.m. in London, ending a five-day winning streak that had seen the index reach record highs last week. France’s CAC 40 index tumbled 2% shortly after the announcement, reflecting investor concern over the country’s deepening political instability.
Lecornu’s resignation — coming just weeks after his appointment — marks another setback for President Emmanuel Macron’s government, already weakened by the collapse of former Prime Minister François Bayrou’s administration amid budget disputes. Analysts say the development raises the likelihood of early elections and further market volatility.
French banking stocks bore the brunt of the sell-off, with Societe Generale, BNP Paribas, and Credit Agricole all dropping more than 5%. Meanwhile, the yield on France’s 10-year bond climbed to a 10-day high of 3.599%, signalling investor unease.
The euro also fell sharply, down 0.7% to $1.1658, as traders weighed the implications of another leadership crisis in Europe’s second-largest economy.
Melissa Enoch
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