Published Mon, Oct 19, 2026 · 08:01 PM
FRENCH equities led losses in Europe on Monday after one of the worst bouts of protest violence in years over the weekend, while broader sentiment was subdued ahead of a busy week of earnings.
The blue-chip CAC 40 index fell 1.38 per cent after nationwide protests triggered by rising prices and worsening public services rocked the euro zone’s second-largest economy as it grapples with weak growth and rising debt.
The unrest, which adds to political uncertainty ahead of the presidential election in 2027 and tests investor resilience, pressured French government bonds.
“There is clearly political risk and that is going to mean you get near-term volatility,” said Kiran Ganesh, a multi-asset strategist at UBS Global Wealth Management.
“There’s a range of factors beyond the protests, which are probably more important for the medium and longer term picture.”
French lenders BNP Paribas, Societe Generale and Credit Agricole fell between 2.2 per cent and 2.6 per cent. Retailer Carrefour declined 1.9 per cent and shopping mall operator Unibail-Rodamco-Westfield declined 2 per cent.
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The pan-European Stoxx 600 index was down 0.79 per cent at 639.63 points by 0913 GMT after climbing more than 2 per cent the previous week, its best week since late June, as European shares held up better than US peers during a selloff in AI-linked stocks over concerns about rising debt to fund infrastructure.
Cyclical sectors led declines, with defence stocks among the biggest losers, while banks also came under pressure.
Spain’s benchmark fell 1.34 per cent, weighed down by declines in bank stocks. A snap election scheduled for next month has also added to political uncertainty in the euro zone.
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Spain’s hard-left parties on Saturday presented separate candidate lists for a snap election, reducing Socialist Prime Minister Pedro Sanchez’s chances of staying in power at the head of a leftist coalition.
Investors were also eyeing earnings from European and US blue-chip companies to help risk appetite after the AI-linked stocks selloff last week.
Software maker SAP, British lender Barclays and telecom equipment maker Nokia are scheduled to report later this week.
In the US, results from Meta Platforms and chip firms will be will be scrutinised for signs of AI demand and spending trends that could provide fresh direction for equity markets.
Among individual movers, Norway’s Mowi gained 3.8 per cent after the salmon producer’s third-quarter harvest volumes hit an all-time high.