European shares opened higher on Monday, marking a strong start to a week filled with political and economic events. Much of the focus is on France, where political uncertainty continues to grow. The country is on track to search for its fifth prime minister in just three years.
French Prime Minister François Bayrou is widely expected to lose a crucial no-confidence vote later on Monday. This comes at a difficult moment for the eurozone’s second-largest economy, which is struggling to manage its rising debt. Investors are also watching closely as France faces its first of several credit ratings reviews later this week.
The pan-European STOXX 600 gained 0.33% to reach 551 points by 07:08 GMT, while France’s CAC 40 index rose 0.4%. Despite the early gains, French equities have underperformed compared to the broader STOXX index in 2025. Longer-term bond yields have surged to multi-year highs, adding pressure due to concerns about debt-driven government spending.
Energy shares provided the biggest boost, with oil and gas stocks climbing 1.2%. The rise followed a 1.8% increase in crude oil prices, as traders reacted to the prospect of new sanctions on Russian crude after overnight strikes in Ukraine. These concerns overshadowed OPEC+’s recent decision to increase output.
Company-specific moves also shaped trading. Goldman Sachs cut its rating on RyanAir, pushing the airline’s shares down 2%. Meanwhile, Marks & Spencer jumped 2.2% after Citi upgraded the stock to a “buy” from “neutral.”
Tech stocks were also in focus. Dutch-listed ASML rose 0.7% after reports from Reuters suggested it will soon become the largest shareholder in French artificial intelligence startup Mistral AI.
