Optencis
Violent riots across France over the weekend have added to the country's political crisis and weighed on markets on Monday 19 October 2026. Major European stock indices fell more than 1%, and EUR/USD lost 0.2% to 1.1220 after briefly trading below 1.1200. Reuters reported that French markets tumbled as the unrest added to the political turmoil.
What happened
Protests over the cost of living turned into looting and burning in many parts of France over the weekend, Bloomberg reported. On Monday, the French Prime Minister called for partial curfews after the riots, according to Reuters. Reuters also described the unrest as a sign of the difficulties facing President Emmanuel Macron in the final months of his term. Bloomberg noted that the violence is raising concern across Europe, where at least half a dozen countries hold elections next year.
The figures
European markets started the week on the back foot. Major indices in Europe fell more than 1%, and the euro was the weakest major currency on the day, investingLive reported. EUR/USD was down 0.2% at 1.1220, after a brief move below the 1.1200 level earlier in the session. The US dollar itself was mixed: USD/JPY rose 0.1% to 158.18, while AUD/USD gained 0.6% to 0.6985. Elsewhere, gold rose 0.2% to $4,172 an ounce, WTI crude oil fell 0.4% to $98.64 a barrel and Bitcoin gained 1.5% to $82,124.
- 1Weekend riotsCost-of-living protests turn violent
- 2Political uncertaintyFragile political and fiscal backdrop
- 3Market pressureEuropean stocks and euro lower
Why markets are watching
France was already dealing with a fragile political and fiscal backdrop, meaning questions about the government's stability and its public finances. The riots add another layer of uncertainty, and that uncertainty is weighing on European shares and on the euro, investingLive said. Investors tend to demand more for holding assets in a country when its political outlook becomes harder to read. This is why political events, even without a direct economic figure attached, can move currencies and stock indices.
Read alsoEuropean Central Bank preview: main refinancing rate expected to stay at 2.65%A different mood in the US
The picture was quite different across the Atlantic. US stock index futures rose, with S&P 500 futures up 0.5% and Nasdaq futures up 1.2%, as tech shares tried to recover from a heavy selloff last week. A modest easing in US Treasury yields, the return on US government bonds, gave some relief to tech stocks and also supported gold. For now, Wall Street appears to be looking past Europe's political troubles, but it remains to be seen whether Europe's stress spills over into broader sentiment.
Sources: Bloomberg, investingLive, Reuters.
