European stocks drop as political worries weigh on French banks

Published Fri, Aug 28, 2026 · 06:08 AM

EUROPEAN stocks fell as French lenders slid amid renewed political uncertainty as a key presidential debate got underway. 

The Stoxx Europe 600 was down 0.7 per cent by the close. The French CAC 40 was the worst-performing country index, dragged lower by BNP Paribas and Societe Generale, both down more than 4 per cent.

Concerns about the country’s political stability resurfaced as key presidential candidates began presenting their economic platforms at the annual conference of the Medef business federation. The five biggest laggards in the regional index were all listed in France.

The construction sector underperformed after Eiffage reported first-half results that missed expectations. Food and beverage shares were weighed down by Pernod Ricard, which fell more than 4 per cent after cutting its outlook.

Tech stocks gained after Nvidia gave a bullish sales outlook in the US, easing concerns that artificial intelligence spending was losing momentum. 

“Nvidia’s results confirmed that the AI cycle is still on but European equities are not the best placed to benefit from this,” said Emilie Tetard, Natixis CIB strategist.

European shares have failed to gain traction so far this week as investors seek fresh catalysts to push the benchmark higher.

Attention now turns to the Jackson Hole Economic Policy Symposium, which kicks off on Friday (Aug 28), for clues on the US Federal Reserve’s path on interest rates.

In other individual stocks, Aker ASA was one of the biggest gainers in the Stoxx 600 index, rising 7 per cent, after its portfolio company Nscale Global Holdings Limited secured a US$45 billion contract in the US. BLOOMBERG