Macron Election Call Sends French Markets to Worst Week in Years
- Bond spread with Germany posts biggest jump on record
- CAC 40 stock index erases gain for the year as banks slump
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Investors swiftly rebuked French President Emmanuel Macron’s snap-election call as it ignited warnings of a further deterioration in the nation’s finances and even fears of a fresh euro crisis.
Government bonds were at the heart of the rout, with the premium that investors demand to own 10-year OATs over German bunds posting the biggest weekly jump on record. The selloff wiped about $210 billion off the value of French stocks, with banks Société Générale SA, BNP Paribas SA and Crédit Agricole SA — all big holders of government debt — losing more than 10% each.