French Market Stutters Amid Political Uncertainty

French shares finished a volatile session flat as political struggles within the government raised uncertainties. The CAC 40 index dropped earlier, impacted by threats of a no-confidence motion against Prime Minister Michel Barnier. Meanwhile, Germany's DAX hit a record high, benefitting from a weaker euro.

French shares concluded Monday on a flat note amid political turbulence threatening the government's stability. Investors refrained from wagering heavily ahead of a potential government breakup.

Political tensions soared as far-right and left-wing parties prepared to challenge Prime Minister Michel Barnier with a no-confidence motion. Barnier's attempt to pass a social security bill without a parliamentary vote heightened tensions further.

While the French CAC 40 index lagged, Germany's DAX saw gains, supported by a euro slide, which favored exporters. Market risks extended to banking shares with Credit Agricole and BNP Paribas falling, but luxury brands LVMH and Hermes benefitted from the euro's weakness.

(With inputs from agencies.)