Europe’s Stocks Tumble Amid France’s Political Turmoil and Stellantis CEO Resignation

Europe's main stock index opened lower due to France's political instability and Stellantis CEO resignation. CAC 40 dropped 1%, while Stellantis fell 7%. National Rally threatens a no-confidence motion against the French government pending budget demands. French lending costs exceeded Greece's, and Delivery Hero shares declined.

European stocks stumbled at the start of the week, with France's CAC 40 shedding over 1% amid political unrest in the country and a significant resignation at Stellantis.

The STOXX 600 index dipped by 0.3% by 0810 GMT, as Stellantis shares, both in Paris and Milan, dropped 7% after CEO Carlos Tavares stepped down, affecting the automobile sector by nearly 2%.

Political tensions soared as the National Rally threatened to endorse a no-confidence vote unless their budgetary demands were met, deepening the strain on France's financial landscape. This uncertainty contributed to rising French borrowing costs, surpassing those of Greece for the first time, while the euro weakened against the dollar. Delivery Hero was another casualty, sliding 7% due to changes in labor status at its Glovo unit.

(With inputs from agencies.)