French Markets Slide as Nation Plunged Into Political Turmoil
- French banks lead a stock market selloff; bond yields surge
- Analysts see risks to bond spreads, euro before the election
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French markets tumbled as President Emmanuel Macron’s shock decision to call an election gave investors yet another reason to ditch the nation’s securities.
Stocks slumped, with banks leading losses, as uncertainty over who will govern France added to existing angst about the country’s fiscal woes. Yields on French bonds soared to the highest since November and the euro tumbled to a one-month low. Meanwhile the pan-European Stoxx 600 stock index slipped as much as 0.9%.