European stocks closed slightly higher on Friday, buoyed by strong sectoral gains despite ongoing political uncertainty in France. The pan-European Stoxx 600 rose 0.2%, erasing earlier losses, with most sectors ending the session in positive territory.
France’s CAC 40 Rallies
France’s CAC 40 index climbed 1.4% despite the resignation of Prime Minister Michel Barnier. Barnier stepped down after losing a parliamentary vote of confidence on Wednesday, which followed his decision to pass a contentious budget without a formal vote.
President Emmanuel Macron, addressing the nation, criticized lawmakers for prioritizing partisan agendas over citizens’ interests. Macron affirmed his commitment to completing his presidential term through 2027, as he begins the search for a new prime minister.
Sector Highlights
Automotive stocks led the European rally, gaining over 1.8%, while mining stocks were among the laggards, slipping 0.8%.
The euro dipped slightly, trading 0.1% lower at $1.0571, reversing gains from the previous session.
Global Context: U.S. and Asian Markets
Across the Atlantic, U.S. markets posted gains following stronger-than-expected jobs data. November’s nonfarm payrolls rose by 227,000, significantly outpacing expectations of 214,000 and signaling resilience in the U.S. economy.
In Asia, markets ended mixed as investors monitored South Korea’s political instability after President Yoon Suk Yeol briefly imposed martial law earlier this week.
Outlook for European Markets
Despite Friday’s modest gains, political tensions in France and global economic data will remain focal points for European investors. President Macron’s next move in selecting a new prime minister could further influence market sentiment in the coming weeks.
