European Stock Markets Decline Due to Political Uncertainties

Sales Pressure in European Markets

European stock markets are experiencing a downward trend due to ongoing political uncertainties in France. As of 10:50 today, the Stoxx Europe 600 index is trading at 569.2 points, down by 0.2%. Germany's DAX 40 index has decreased by 0.04% to 24,387 points, while the UK's FTSE 100 index remains stable at 9,475 points with a 0.1% loss.

Political Developments in France

The FTSE MIB 30 index in Italy has fallen by 0.3% to 43,031 points, while Spain's IBEX 35 index has decreased by 0.2% to 15,536 points. The recent resignation of Sebastien Lecornu, who was appointed as Prime Minister on September 9, continues to play a decisive role in the direction of regional stock indices. French President Emmanuel Macron has requested Lecornu to maintain dialogue with political parties and to present concrete proposals that will ensure stability for the country by this Wednesday evening.

Budget Plans and Economic Data

Lecornu's appointment as Prime Minister, replacing François Bayrou, who failed to obtain a vote of confidence from the National Assembly, poses a significant challenge for political stability in the country. Bayrou had aimed to reduce France's public debt with the budget plan announced in July. Additionally, among the regional economic data, the decline of 0.8% in factory orders in Germany for August stands out.

Risk Perception in Global Markets

The uncertainties brought about by the potential shutdown of the federal government in the US are another factor contributing to heightened risk perception in global markets. Analysts note that the regional data agenda is calm, while they express that the statements to be made by European Central Bank (ECB) President Christine Lagarde today could provide important clues regarding the impact on the economy.