By Alexander Bueso
Date: Tuesday 09 Sep 2025
(Sharecast News) - European stocks were slightly mixed on Tuesday as investors assessed the political turmoil in France Prime Minister Francois Bayrou was ousted in a confidence vote a day earlier.
Traders were also waiting on US inflation figures that were due out over the next two days.
The pan-regional Stoxx 600 index ended up 0.14% at 15,023.90, with France's CAC 40 rising 0.19% alongside to reach 7,749.39.
Italy's FTSE Mib meanwhile put on 0.68% to 42,008.22, but the German Dax dipped 0.37% to 23,718.45.
Bayrou, who had called the motion, had been widely expected to lose the vote as rivals from both left and right combined to oppose 2026 austerity budget plans to tackle the country's massive deficit.
French President Emmanuel Macron will now have to appoint the nation's fifth prime minister in less than two years.
The yield on the benchmark 10-year French government bond was roughly flat at 3.410%, whilst the euro ticked lower and Brent crude was up by a half a percentage point.
"The (largely expected) fall of the French government has made limited impact on euro-zone financial markets," commented Jonas Goltermann, deputy chief markets economist at Capital Economics.
"But it represents another step in the gradual deterioration of the outlook for French government bonds. We continue to think that the spread between French bonds and those in the rest of the euro-zone will widen further."
In equity markets, London-listed Anglo American jumped 9% after it confirmed its merger with Canada's Teck Resources to create one of the world's top five copper producers. Frankfurt-listed Teck shares jumped more than 21%.
Saab retreated 2% after Barclays initiated coverage on the defence manufacturer with an 'underweight' rating.
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