French markets, euro battered as government collapses
1. French assets dropped following Prime Minister Lecornu's resignation. 2. His resignation increases economic uncertainty in the euro zone.
FAQ
Why Bearish?
The resignation suggests political instability, which can deter investments. Historical instances, like Italy's political crises, typically led to market downturns.
How important is it?
Political events in major economies like France can affect global investor sentiment, impacting S&P 500 performance.
Why Short Term?
Political uncertainty is likely to affect market sentiment immediately. For example, recent volatility from Brexit negotiations impacted stock prices rapidly.