Moody's Downgrade Shakes French Stocks and European Markets

French stocks faced losses as Moody's unexpectedly downgraded France's credit rating. The CAC 40, a major index, fell by 0.3%. Investors are looking for insights from upcoming business activity reports, while brands like Porsche and Entain also reported significant financial challenges during the trading day.

On Monday, French stocks took the lead in nudging European markets lower, following an unexpected credit rating downgrade by Moody's.

France's CAC 40 index dipped by 0.3%, as Moody's cut the nation's rating from Aa2 to Aa3, raising concerns among investors and causing a slip in shares of major banks.

The broader European index, STOXX 600, experienced a 0.1% decline as markets braced for business activity reports. Meanwhile, companies like Porsche and Entain faced their own financial hurdles, impacting trading sentiment.

(With inputs from agencies.)