France: CAC 40 Slips Amid Fiscal Concerns and Civil Unrest.

The CAC 40 fell about 1% to hover near 8,100 on Friday amid civil unrest as the government struggles to push a budget through parliament. National protest turnout hit new highs on Thursday. Investors have been selling French bonds in recent weeks, partly on deficit concerns and doubts over whether a minority government can push spending cuts through parliament. The spread between French and German 10-year government bond yields rose to levels not seen since the 2011 euro-area debt crisis. The government deficit is set to widen to 5.4% of economic output this year, while rising borrowing costs add pressure. France’s trade deficit widened to €7.3 billion in September, above expectations of a €5.8 billion shortfall. It was the second-largest gap since October 2024. Luxury stocks posted losses, with LVMH down nearly 3%, Hermes over 2% and Kering more than 2.5%. Industrials were also mostly lower. Elsewhere, TotalEnergies shed nearly 2% amid growing hopes of a US-Iran peace deal.