European Markets Edge Up Amid French Political Turmoil

European shares rose on Tuesday, driven by the technology and basic resources sectors, amid investor concerns over potential French governmental collapse. The STOXX 600 gained 0.2%. France's CAC 40 underperformed due to political instability as no-confidence motions against PM Michel Barnier emerged, impacting markets and bonds.

European shares opened higher on Tuesday, spurred by gains in the tech and basic resources sectors. Investors are anxiously monitoring France's political situation this week, as the potential collapse of the government has unsettled markets in the region.

The pan-European STOXX 600 climbed 0.2%, with technology and basic resources leading the advance, noting increases of 0.9% and 0.8%, respectively. Despite a 0.6% rise, France's CAC 40 lagged behind its counterparts, as the government appears close to falling. Far-right and left-wing factions have submitted no-confidence motions against Prime Minister Michel Barnier, placing added pressure on the markets and state finances.

As the eurozone's second-largest economy contends with a rising deficit, Barnier's administration faces significant resistance over its budget proposals. Shares of Worldline saw substantial gains on the STOXX 600, buoyed by takeover interest from private equity firms. Meanwhile, Mercedes-Benz's shares fell 2% after Barclays downgraded its rating to "underweight" from "equal-weight".

(With inputs from agencies.)