France hit by debt sell-off as violent protests unnerve investors
Difference between French and German borrowing costs widens after public buildings burned and shops looted Business live – latest updates France has been hit by a fresh wave of selling in its bond and stock markets after violent protests over the weekend led to thousands of arrests and left public buildings burned and hundreds of shops looted across the country. The chaos has spooked investors as…
France is experiencing a surge in bond and stock market sell-offs following violent protests that have left public buildings burned and numerous shops looted. The unrest has caused investor uncertainty and raised concerns about the country's efforts to curb spending and reduce its debt. As a result, the yield on French 10-year bonds increased by 16 basis points, reaching 4.94%, nearing a 24-year high and widening the gap between French and German borrowing costs to their highest level in 14 years.
Analysts at Goldman Sachs warned that European sovereign risk is once again a concern, highlighting the fiscal challenges France faces in the current climate. The euro also suffered, hitting a 17-month low against the pound amid the turmoil. With France already grappling with a difficult fiscal backdrop and upcoming 2027 elections, the recent events have added another layer of political risk to the markets.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
