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Paris Stocks Hold Steady as French Political Risk Drives 30-Year Yield to 2011 High

Traders eye a confidence vote that could influence forthcoming credit reviews.

Overview

  • The CAC 40 was little changed on Tuesday as investors awaited Wall Street’s return after the Labor Day break.
  • France’s 30-year government bond yield climbed above 4.50%, its highest level since 2011, signaling mounting long-horizon risk concerns.
  • Prime Minister François Bayrou is holding party consultations ahead of a September 8 confidence vote that could determine his government’s fate.
  • Credit watchers flagged near-term calendar risks with Fitch due to review France on September 12 and S&P set to follow in November.
  • Cross-border factors remained in view with a U.S. appeals-court ruling finding many Trump tariffs unlawful but stayed until October 14, and U.S. August jobs data due Friday shaping Fed rate-cut expectations.