The Paris CAC 40 tumbled 1.4% to close at 7,972, as fresh political instability, rising sovereign borrowing costs and weakening domestic growth data undermined confidence in the country’s fiscal and economic trajectory. Prime Minister Lecornu resigned just hours after unveiling his cabinet, exposing systemic gridlock in a fragmented legislature and fueling investor fears over surging deficits, a recent credit downgrade, and widening sovereign spreads. At the same time the HCOB France Composite PMI slipped to 48.1 in September and industrial production unexpectedly fell in August, which together signal contracting private sector activity and weaker near term earnings for cyclical sectors. Bank shares led losses, with Societe Generale down 4.2%, Credit Agricole down 3.4%, BNP Paribas down 3.2%, and AXA down 2.3% while luxury shares also underperformed, with LVMH falling 2.3%, Hermes 2.5%, and Essilor down 2.4%.