Markets saw European stocks fall in their worst trading session of the month.
Political and financial concerns in France prompted investors to sell shares of major companies.
The decline in European stocks was reflected in the French CAC 40 index, which fell 1.7%, hitting its lowest level in a month.
The European Stoxx 600 index also fell by 0.7%, closing at 651.85 points.
These losses came ahead of the first presidential debate in the run-up to next year’s election.
Investors fear that the candidates will adopt costly economic programs.
This could increase pressure on the budget and public debt.
France already faces one of the highest deficit levels in the eurozone.
Investors are also awaiting Fitch’s review of France’s credit rating.
This potential move has heightened concerns about the government’s ability to control public finances.
French banks led the list of losers, with shares of BNP Paribas, Société Générale, and Crédit Agricole falling
by between 4% and 5%. The European banking sector also fell by 1.7%.
In contrast, the technology sector rose by 1.8%, buoyed by positive outlooks for Nvidia.
Attention is also turning to the Jackson Hole Symposium, where U.S. Federal Reserve Chair Kevin Warsh will deliver his first speech.
Amid anticipation regarding the direction of monetary policy and the central bank’s independence.
Read also:
