European stocks fall on unrest in France as Nasdaq bounces

European equities declined on Monday amid escalating unrest in France and heightened concerns over elevated debt levels. The tech-focused Nasdaq exhibited a rebound, following prior worries about artificial intelligence impacting equities last week. Wall Street outperformed European markets, with the Nasdaq bouncing back, while Paris and Milan stocks both dropped 1.1% and 1.6% respectively.

The unrest in France and clashes in Milan fueled apprehensions about debt. Most sectors suffered losses, and there was renewed selling of bonds and the euro. Analysts noted that earnings reports from tech companies, especially Meta, would be pivotal for risk sentiment. French President Emmanuel Macron acknowledged the anger and shame following France's worst days of civil unrest in years, following nearly 2,400 arrests and nearly 1,000 injured police officers.

Italy's Prime Minister Giorgia Meloni convened a security meeting to address Milan's violence, reminiscent of Paris's scenes of chaos and looting. Other markets, like Jakarta's, also suffered significant drops, as MSCI declared it no longer appropriate to maintain Indonesia's emerging-market status.