As of 10.40 in European markets, the Stoxx Europe 600 indicator index is trading at 639.3 points, with an increase of 0.10 percent, and the FTSE 100 index in England is trading at 10,707 points, with a decrease of 0.24 percent.
In Germany, the DAX 40 index is at 25,320 points, with a 0.06 percent increase compared to the previous close, in Italy, the FTSE MIB index is at 49,168 points, with a 0.19 percent increase, in France, the CAC 40 index is at 7,861 points, with a 0.29 percent gain, and in Spain, the IBEX 35 index is at 19,068 points, with a 0.13 percent decrease.
The intensifying events in France are escalating the political and social chaos in the country, causing deepening concerns about the country’s economy.
Mass demonstrations due to high living costs, inflation and the decline in the quality of public services have turned into looting across major cities.
While the social unrest reveals the deep political gridlock around President Emmanuel Macron’s administration, it also makes it increasingly unlikely that French lawmakers will approve the spending cuts necessary to control the growing budget deficit, which has reached 5.4 percent of the country’s Gross Domestic Product (GDP).
The 10-year bond interest rate in France, which increased by 5 basis points to 4.98 percent yesterday, later stabilized at 4.92 percent. France-Germany bond interest rate difference increased to 153 basis points. With ongoing risks, euro/dollar parity decreased by 0.1 percent to 1.1230.
On the other hand, due to the increase in fuel prices in the UK, annual inflation reached 3.5 percent in September, the highest level seen after October 2025. Following the data in question, pricing in the money markets makes it seem certain that the Bank of England (BoE) will increase interest rates in November.
Natural gas prices in Europe had reached the highest level since December 2022, rising to 89.74 euros per megawatt hour, due to the pressures brought by continued disruptions in maritime transportation through the Strait of Hormuz and low storage occupancy levels before winter.
Natural gas prices in Europe have stabilized at 87 euros today.
On the other hand, speaking at the “Invest in Germany” summit organized by the German government in Berlin, German Chancellor Friedrich Merz announced that, within the scope of the “Made in Germany” initiative, participating companies have committed to a total investment of 800 billion euros in Germany by 2028.
