European Stocks Close Lower again
Euro Area Stock MarketEuropean stocks closed mostly lower on Monday as fresh political turmoil in France rekindled concerns of fiscal instability among the Eurozone's largest economies.
The Eurozone's STOXX 50 dropped 0.3% to 5,633 and the pan-European STOXX 50 closed flat at 571. Markets were rattled by the resignation of Prime Minister Lecornu as the French parliament remained against spending cuts in the country's budget, just weeks after taking office and a day after President Macron unveiled a new government.
French banks and insurers fell sharply as the slide for OATs pressured their balance sheets and lifted their liquidity rates, with BNP Paribas sliding 3.5% while AXA dropped 2.5%. Luxury and industrials traded in Paris also underperformed, with LVMH, Hermes, and EssilorLuxottica losing more than 2%. In turn, stocks with exposure to AI and computing infrastructure benefited from the new deal between OpenAI and AMD, with ASML and Adyen jumping 2% each.
Source: Trading Economi
