Market Turmoil: French Stocks, Tariffs, and Political Uncertainties

French stocks hit a three-month low due to investor concerns about the new government and budget, combined with fears of Trump's proposed tariffs, affecting European automobile stocks. Marine Le Pen's opposition adds political tension, while the international market remains jittery over potential tariff targets, keeping investors cautious.

French equities reached a three-month low on Wednesday, driven by investor anxiety surrounding the newly formed government and its financial strategy. The added fears of U.S. President-elect Donald Trump's proposed tariffs further pressured European automobile stocks.

The pan-European STOXX 600 fell 0.3% by mid-morning, following a three-day winning streak that ended Tuesday. France's stock index lagged behind its counterparts, dropping over 1%, with bank stocks like BNP Paribas, Societe Generale, and Credit Agricole seeing declines between 2% and 3.4%.

Political tension rose as Marine Le Pen threatened government overthrow due to budget disagreements, heightening market uncertainty. Meanwhile, European auto stocks faced further declines, troubled by potential tariffs on Mexican imports, highlighting the ongoing challenges for the sector.

(With inputs from agencies.)