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2025.08.2607:33:06UTC+00European Stocks Sink as Confidence Vote in France Spurs Political Jitters

European stocks saw a significant decline on Tuesday, with the Stoxx 50 decreasing by approximately 1%. In France, equities plummeted further amid escalating political unrest as Prime Minister Francois Bayrou announced a confidence vote scheduled for September 8, which threatens the stability of the current government. The CAC 40 dropped 1.9%, exerting downward pressure on European market indices, while the FTSE 100 edged down 0.6% as it resumed trading post-holiday. Opposition factions, including the far-right National Rally, France Unbowed, and the Greens, have pledged to oppose Bayrou, increasing the government's vulnerability. Broader European markets continue to face challenges from slow economic growth and geopolitical uncertainties. In specific stock movements, Commerzbank declined over 6% following its downgrade by Bank of America, whereas Orsted recovered 2% after recording significant losses linked to a discontinued U.S. wind energy project.

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