European Markets Gain Despite French Political Turmoil

European equities traded higher on Wednesday, with France’s CAC 40 leading regional gains despite ongoing political instability in the country. The pan-European Stoxx 600 advanced 0.5%, while Germany’s DAX added 0.3%, and the UK’s FTSE 100 rose 0.3%. The CAC 40 climbed 0.8%, outperforming its peers even amid uncertainty following the surprise resignation of French Prime Minister Sébastien Lecornu earlier this week. Lecornu is expected to report back to President Emmanuel Macron later today after negotiations to form a new government, as investors weigh the potential fiscal implications of France’s widening budget deficit.

Elsewhere in Europe, sentiment was mixed across sectors. The automotive industry faced headwinds after BMW cut its 2025 earnings forecast, citing shifting U.S. trade tariffs and sluggish Chinese demand, sending the autos index down 1.6%. Semiconductor stocks such as ASML and ASMI also slipped, following renewed calls from U.S. lawmakers for expanded export restrictions on chipmaking equipment to China, amid a widening geopolitical technology rift.