European stocks fall on unrest in France as Nasdaq bounces

European equities fell on Monday (Oct 19) amid escalating unrest in France and street clashes in Italy, fueling worries about elevated debt. Most sectors declined, while bonds and the euro endured renewed selling. Wall Street outperformed Europe, with the tech-heavy Nasdaq bouncing back after recent concerns about artificial intelligence impacted equities, said Art Hogan of B. Riley Wealth Management.

Whether the rebound endures hinges on tech firm earnings and their messaging regarding AI investment as more companies report third-quarter results this week. Meta, the Facebook parent company, is closely watched as it is the first of the five major hyperscalers to report earnings. Paris stocks slipped 1.1 percent and Milan fell 1.6 percent, reflecting anxiety over civil unrest displayed by President Emmanuel Macron's acknowledgment of anger and shame following some of France's worst unrest in years.

Nearly 2,400 people were arrested in France's worst urban violence in years, with around 1,000 police injured. Authorities imposed partial curfews in several cities, including Paris, Lille, and Lyon, to shield businesses. In Italy, Prime Minister Giorgia Meloni convened a security meeting to tackle Milan violence. Jakarta's stock market tumbled over five percent, hitting its lowest level in six years, following a statement from MSCI, which deemed it inappropriate to maintain the country's emerging-market status, heightening fears of foreign investment exodus.