FX.co ★ CAC 40 Falls as French PM Lecornu Resigns Amid Political Uncertainty

The Paris CAC 40 experienced a significant decline of 2.1% to approximately 7,908, erasing the modest gains observed in the previous session. This downturn was prompted by ongoing political uncertainties following the resignation of French Prime Minister Sébastien Lecornu, which President Emmanuel Macron accepted. Macron had just presented a new cabinet on Sunday, led by Lecornu. Meanwhile, Olivier Faure, leader of the Socialist Party, cautioned that the Socialists would oppose the government should it persist with the president’s previous policies. The banking sector bore the brunt of the losses, with Société Générale experiencing a 5.3% decline, Crédit Agricole dropping by 4.0%, and BNP Paribas falling by 4.2%. Additionally, the energy sector struggled, with Veolia decreasing by 3.6% and ENGIE down by 3.1%. In other developments, Edenred saw its shares dip by 1.7% following its announcement of a new share buyback plan worth up to €25 million, intended to be completed by the end of 2025.