Political risks are having a negative impact on European stock exchanges.

European Stock Markets Lose Their Appeal at the Start of the Week

In the first trading day of the week, European stock markets are experiencing significant fluctuations due to rising political and geopolitical uncertainties. While many stock exchanges outside Germany are following a negative trend, the broad European index Stoxx Europe 600 has decreased by 0.1% to 587.1 points.

Current Market Situation

In Germany, the DAX 40 index has risen by 0.2% to 24,334 points, while the FTSE 100 index in the UK has lost 0.4% and is trading at 9,857 points. The CAC 40 index in France has decreased by 0.2% to 8,134 points, and Italy's FTSE MIB 30 is trading down 0.2% at 44,680 points. Spain's IBEX 35 index has also fallen by 0.2% to 17,137 points.

Macroeconomic Data and Its Impacts

According to the macroeconomic data released in the Eurozone, UK GDP for the third quarter increased by 0.1% compared to the previous quarter and rose by 1.3% on an annual basis. However, the country’s current account deficit for the same period was £12.1 billion. These data are increasing uncertainty in the markets.

Political Uncertainties Rise in France

In France, the inability of parliamentarians to reach an agreement on a joint text regarding the 2026 budget in the Joint Committee has led to 30-year bond yields reaching a historic peak of 4.51%. This situation is causing rising concerns in the financial markets.

Geopolitical Developments Shake the Markets

Ukraine's assertion that Russia needs to be pressured to end attacks indicates rising geopolitical risks. Analysts emphasize that these uncertainties will continue to impact European markets and note that the November Chicago Fed National Activity Index data to be released in the US later in the day should be closely monitored.