European stock markets declined due to political uncertainty in France.

Trend of Decline in European Stock Markets

European stock markets are experiencing a negative trend due to increasing geopolitical risks and the repercussions of political uncertainties in France. The Stoxx Europe 600 index decreased by 0.4 percent to a level of 568.3 points. Germany's DAX 40 index is trading at 24,320 points, down 0.3 percent. Meanwhile, the FTSE 100 index in the UK is at 9,473 points, reflecting a 0.2 percent loss.

Stock Market Performance of Countries

In Italy, the FTSE MIB 30 index recorded a 0.6 percent decline to 43,010 points. In Spain, the IBEX 35 index remained at 15,533 points with a 0.4 percent decrease, while in France, the CAC 40 index fell by 1.7 percent to 7,943 points compared to the previous day. Experts emphasize that the primary reason behind this decline is the increasing geopolitical risks.

Geopolitical Risks and Political Developments in France

Russia's recent airspace violations have led to heightened geopolitical tensions. Developments regarding the Ukraine-Russia War and new sanction measures are on investors' agendas. Additionally, after François Bayrou's government lost the vote of confidence in the National Assembly, Sebastien Lecornu, who was appointed as prime minister on September 9, formed a new government. However, concerns deepened when Lecornu resigned within hours of the government formation.

Expected Statements from Central Bank Governors

Investors are focusing on the statements to be made today by the central bank governors in the region. European Central Bank (ECB) President Christine Lagarde and Bank of England (BoE) Governor Andrew Bailey are expected to share critical information regarding the economic outlook and monetary policy. Lagarde will speak at the European Parliament's Economic and Monetary Affairs Committee meeting held in Strasbourg, France today. Bailey will express his views at the Global Investment Summit in Scotland.

Additionally, the Sentix investor confidence index, retail sales data, and political developments in the Eurozone will also be closely monitored today.