European stocks dip as French crisis impacts investor sentiment

Written by Emily J. Thompson, Senior Investment Analyst

Source: CNBC

Updated: Oct 07 2025

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Source: CNBC

European Market Reaction: European stocks fell, particularly influenced by the resignation of French Prime Minister Sebastien Lecornu, which has led to a political crisis in France, causing the CAC 40 index to drop by around 1.3%.
Corporate Developments: Despite the overall market decline, some French stocks like Renault and luxury brands showed gains, while British oil giant Shell reported an expected increase in gas trading but also a significant financial hit from a project cancellation.
U.S. Market Context: U.S. stock futures were slightly lower following a strong start to the week, with investors optimistic about mergers and acquisitions, despite concerns over the ongoing government shutdown affecting economic data releases.
Asian Market Performance: In Asia, Japan's Nikkei 225 reached a record high for the second consecutive session, buoyed by a tech rally in the U.S. markets.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.