European markets were mixed on Monday, with fresh political drama in France unsettling investors. The news came after France’s new Prime Minister, Sebastien Lecornu, suddenly resigned just hours after forming his cabinet. Both his allies and opponents had threatened to bring down his government, deepening the political instability already facing President Emmanuel Macron’s administration.
The uncertainty hit French stocks hard, with the CAC 40 index falling 1.4%. Across the region, the broader Stoxx 600 stayed flat, Germany’s DAX inched up by 0.1%, and the UK’s FTSE 100 slipped 0.2%.
Banking shares were among the biggest losers, especially French lenders such as BNP Paribas, Societe Generale, and Credit Agricole. Their declines dragged down the overall Eurozone financial sector.
Energy companies helped cushion some of the losses, as oil prices jumped following OPEC+’s decision to raise output by less than expected. This smaller production increase eased worries about oversupply, supporting shares of major energy firms. The technology sector also provided some lift, with semiconductor giant ASML rising more than 1%.
However, not all companies fared well. Shares of French kitchenware maker SEB plunged over 22% after the company cut its yearly sales and profit forecast. SEB blamed weaker consumer spending and a cautious attitude among U.S. buyers and businesses.
In the UK, luxury carmaker Aston Martin warned it expects a deeper full-year loss. The company said demand remains soft in North America and the Asia-Pacific region, while high U.S. tariffs have added more pressure.
Overall, Monday’s session showed investors staying cautious. Political tension in France, sector-specific troubles, and uneven demand across regions kept European markets on uncertain footing.
