Jakarta, RakyatNTT.ID European stock markets plunged on Monday, October 6, 2025, as French Prime Minister Sebastien Lecornu unexpectedly resigned just hours after unveiling his new cabinet.

The sudden political upheaval in France triggered a broad sell-off across the region, ending a week-long rally in major European indices.

France’s benchmark CAC 40 index sank 1.36%, or 109.76 points, to close at 7,971.78, marking its sharpest daily drop since August. The move also snapped a six-day winning streak, reflecting investor jitters over France’s political and fiscal outlook.

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Following Lecornu’s resignation, the French 10-year bond yield surged to a one-week high, while the euro weakened against the U.S. dollar, amplifying volatility in the broader market.

STOXX 600 and Major European Indices Slip

The pan-European STOXX 600 index edged down 0.04% to 570.24, after briefly touching a record intraday high earlier in the session. The index had climbed over 2.8% in the previous week amid optimism about monetary easing.

Regional markets mirrored the downturn:

  • Germany’s DAX fell 0.51 points to 24,378.29,
  • Britain’s FTSE 100 dipped 0.13% or 12.11 points to 9,479.14.

French Luxury and Banking Stocks Lead Declines

Concerns over France’s widening budget deficit—nearly double the EU’s 3% cap—weighed heavily on sentiment.