Political Turbulence and Economic Ripples: Europe's Delicate Balance

European and U.S. stocks fluctuated as France faces political turmoil, potentially leading to the collapse of its government. The Dow and S&P showed mixed responses amid investor focus on economic data. The eurozone's political uncertainty and France's budget issues heighten market implications, affecting global markets and currencies.

European and U.S. stocks displayed volatility on Monday following political developments in France that may lead to the government's collapse. Both far-right and left-wing parties in France announced their support for a no-confidence motion against Prime Minister Michel Barnier, impacting the markets.

In the U.S., Wall Street remained mixed, with technology stocks providing a boost. The Dow dropped 0.32%, and the S&P 500 saw a slight increase of 0.2%. The dollar received a lift, influenced by cautious remarks from President-elect Donald Trump.

As France continues to face political challenges, there is concern over deeper interest rate cuts by the European Central Bank. This sentiment affects investor confidence, driving fluctuations in global markets, currencies, and commodities, with oil prices rising on potential supply disruptions.

(With inputs from agencies.)