European stocks traded sharply lower on Tuesday, with the Stoxx 50 down by around 1%. French stocks tumbled as political turmoil deepened after Prime Minister Francois Bayrou called a Sept. 8 confidence vote that could topple the government.
The CAC 40 fell 1.9%, dragging down European benchmarks, while the FTSE 100 slipped 0.6% on reopening after a holiday. Opposition parties, including the far-right National Rally, France Unbowed, and the Greens, vowed to vote against Bayrou, leaving the government vulnerable. Broader European markets remain under pressure from sluggish growth and geopolitical risks.
Elsewhere, Commerzbank slumped over 6% after a downgrade by Bank of America, while Orsted rebounded 2% after record losses tied to a halted US wind project.
Source: Trading Economics
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