French bond yields hit 2002 high as unrest rattles European stocks
Why it matters: Investors are weighing whether new protests and budget fights will raise France’s borrowing costs and slow growth.
French unrest kept pressure on markets even as broader European stocks edged up on corporate earnings. The pan-European Stoxx 600 rose 0.24% to 640.20 on Oct. 21, but French assets remained under strain after riots and looting disrupted businesses and sharpened worries about weak public finances. Carrefour fell 13.3% after cutting its annual earnings forecast, citing higher costs and store disruptions tied to riots, looting and curfews. France’s 10-year OAT yield climbed to its highest level since 2002, while the spread over German Bunds widened to its largest since 2011. Investors are now focused on more demonstrations and a resumed National Assembly debate on tax measures in the 2027 budget on Oct. 27.