Francois Bayrou, Sebastien Lecornu, Gerald Darmanin, Manuel Valls during the parliamentary extraordinary session prior to a confidence vote over the government’s austerity budget, at the National Assembly in Paris on September 8, 2025.
Magali Cohen | Afp | Getty Images
LONDON — European stocks are expected to hold steady or dip on the open on Tuesday, with investors in the region focusing on further political turmoil in France after the ousting of Prime Minister Francois Bayrou on Monday.
The U.K.’s FTSE index is expected to open flat, Germany’s DAX down 0.218%, France’s CAC 40 down 0.17% and Italy’s FTSE MIB unchanged, according to data from IG.
Traders will be keeping a close eye on France this week after Bayrou and his centrist minority government lost a confidence vote Monday.
The French prime minister was widely expected to lose the motion after failing to win support from political rivals on both the right and left for 2026 budget plans aimed at reducing the country’s yawning budget deficit.
Losing the confidence vote means French President Emmanuel Macron will now have to appoint France’s fifth prime minister in less than two years. Macron is seen as likely to choose another centrist ally to lead a minority government.
Asia-Pacific markets traded mostly higher Tuesday while U.S. stock futures were little changed overnight after the Nasdaq Composite hit a new record on Monday.
Investors stateside are keeping a close eye on inflation reports this week: the U.S. producer price index report for August is due on Wednesday morning, followed by the consumer price index on Thursday.
The inflation prints will be coming in after weaker-than-expected hiring data on Friday, which helped fuel investor hope that the U.S. Federal Reserve is likely to lower benchmark interest rates at its policy meeting next week.
