CAC 40 Falls as Fiscal and Political Risks Mount

2026-10-19 16:02 By Isabela Couto 1 min. read

The CAC 40 fell 1.1% to close at 7,868 on Monday amid civil unrest and deepening political turmoil.

Calls for higher public spending come as France faces mounting pressure to rein in its growing debt burden, complicating efforts to address social grievances without worsening its fiscal position.

The protests unfolded as French lawmakers debated the government’s proposed 2027 budget, which includes €43 billion in measures aimed at reducing the deficit.

The unrest also comes at a critical juncture ahead of the presidential election.

A recent poll showed far-right leader Marine Le Pen and hard-left leader Jean-Luc Mélenchon gaining ground ahead of the election.

Both candidates are viewed as not committed to fiscal restraint.

Losses were broad-based, led by financial stocks.

Crédit Agricole fell 2.6%, Société Générale shed 3.4%, and BNP Paribas lost 2.5%.

EssilorLuxottica dropped 1.5% ahead of its earnings release, as Morgan Stanley cut its price target amid governance concerns.



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