he iPan-European index STOXX 600 lost 1% this Friday and retreated to a more than five-week low. The French CAC 40 index fell 2.7% and The risk premium on that country’s bonds rose to its highest level in seven years.
In addition, In the week the STOXX registered a decrease of 2.4%, while the French benchmark index took the worst part, with a collapse of 6.2%.
French Economy Minister Bruno Le Maire warned that the euro zone’s second-largest economy faces the risk of a financial crisis if the far right or left win the upcoming parliamentary elections due to their strong spending plans.
France’s left-wing parties will present a manifesto for their renewed alliance on Friday, in a bid to challenge the far-right National Rally (RN), which is leading in polls ahead of early voting.
European lenders lost 2.3% and led the declineswith French banks BNP Paribas, Société Générale and Crédit Agricole falling between 2.7% and 3.6%.
The stocks related to the automotive sector widened losses, falling 2.1% to its lowest levels in more than four months on uncertainty over how China might respond to new EU tariffs on imported Chinese electric vehicles. According to reports, Germany is trying to avoid or soften the bloc’s tariffs.
European stocks recorded outflows of $600 million in the week to Wednesday, extending the streak of outflows to four consecutive weeks, according to data from BofA Global Research.
In terms of economic data from the region, the French consumer price index rose 2.6% in May, slightly below the preliminary reading of a 2.7% increase published in late May.
Source: Ambito
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