Key facts
- Nationwide protests over rising prices and declining public services rocked France.
- France's 10-year bond yield rose 13 basis points to 4.9%.
- The CAC 40 index fell 1.5%, with shares in BNP Paribas and Societe Generale down 3% each.
- Carrefour reported protest damage losses in the tens of millions of euros.
- France's credit default swap rose 5 basis points to 82 basis points.
- Moody's will review France's credit rating on Friday.
French markets experienced a significant downturn on Monday, with bonds, equities, and the euro weakening due to widespread protests across the country. The unrest, triggered by high prices and declining public services, underscored the French government's challenges in managing its deficit and weak growth. The yield on France's 10-year bond climbed 13 basis points to 4.9%, marking its largest daily increase since late September, while the spread over German benchmark yields widened to 146 basis points. The blue-chip CAC 40 index dropped 1.5%, with major lenders BNP Paribas and Societe Generale each losing 3%. Retailer Carrefour also fell 1.8% after reporting substantial losses from protest damage. The cost of insuring French sovereign debt against default risk increased, and Moody's is scheduled to review the country's credit rating on Friday.