LONDON — European stocks started the new trading week on a positive note, as market focus turns to France’s imminent confidence due to take place later in the session.
The U.K.’s FTSE index rose just 0.03%, outpaced by Germany’s DAX and France’s CAC 40, both up by around 0.6%.
Investors are keeping a close eye on France on Monday, as French Prime Minister Francois Bayrou is widely expected to lose a confidence vote. Bayrou called for the vote himself after ongoing wrangling with rival political parties over around 44 billion euros ($51.5 billion) worth of budget cuts.
Bayrou’s aim was to bring France’s budget deficit down to 4.6% in 2026 — a level still well above the European Union’s deficit rules — but opposition parties have objected to spending cuts and tax rises in equal measure. If Bayrou is ousted on Monday, French President Emmanuel Macron will have to name the country’s fifth prime minister in less than two years.
In equity markets, Dutch semiconductor company ASML has reportedly invested 1.3 billion euros ($1.5 billion) into French startup Mistral AI’s 1.7 billion euro fundraise.
Elsewhere, London-listed insurance group Phoenix said it will rebrand as Standard Life, a heritage brand it owns, from March 2026.
Asia-Pacific markets traded mostly higher on Monday, as investors assessed Japan Prime Minister Shigeru Ishiba’s resignation announcement over the weekend and eyed key economic data in the region.
U.S. stocks also opened higher with two critical inflation reports expected this week: the U.S. producer price index report for August is due on Wednesday morning, followed by the consumer price index on Thursday.
The inflation prints will be coming in after weaker-than-expected hiring data on Friday, which helped fuel investor hope that the U.S. Federal Reserve is likely to lower benchmark interest rates at its policy meeting later this month.
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