October 20, 2026

France's political earthquakes shake European markets, inflicting sharp losses on stocks and the euro

French stocks topped European stock market losses in Monday’s session, affected by the wave of protests and riots that rocked the country over the weekend, amid growing investors’ fears of worsening political and economic turmoil.

The French CAC 40 index fell by 1.02%, while the European STOXX 600 index fell by 0.39%, reaching 642.24 points. The banking sector topped the list of losses, with a sharp decline of 1.4%.

The negative repercussions extended to the currency market, as the euro recorded a decline of 0.25% to reach $1.1210, coinciding with mounting concerns about financial stability in France, which is already suffering from slow economic growth and high levels of public debt.

This sales wave came after widespread protests that broke out against the high cost of living and the deterioration of public services, and included acts of violence and riots. In a related context, the Elysee Palace announced that President Emmanuel Macron rejected the resignation of Interior Minister Laurent Nunez.

In energy markets, Brent crude maintained its levels above $100 per barrel, despite its decline from its peak recorded in five months, while natural gas prices jumped to their highest levels in four years.

This week, investors’ attention is turning to the quarterly business results of major companies in Europe and the United States, amid a state of anticipation and caution regarding the repercussions of the unrest in France and the rise in energy costs on the performance of the markets.