Overview

• The CAC 40 fell 1.59% Monday following the announcement and opened Tuesday down about 1.91%, extending the selloff that accelerated during Bayrou’s speech.
• Financials led the declines Tuesday, with BNP Paribas down 6.19%, Société Générale 6.31%, Crédit Agricole 4.51%, and insurer AXA 6.45% around 09:30 local time.
• France’s 10-year yield hovered near 3.50% as the spread over Germany widened to about 0.77 point, signaling heightened concern over French sovereign risk.
• Powell’s Jackson Hole comments kept rate-cut hopes in play as investors focus on upcoming U.S. GDP and PCE readings, the August jobs report, and Nvidia’s quarterly results.
• Separately, Valneva dropped roughly 24% after U.S. health authorities suspended authorization of its chikungunya vaccine, immediately halting shipments and sales in the United States.