At 11 o'clock on Monday, the declines ease and the Paris stock exchange's large-cap index CAC 40 is down 1.6 percent. The largest declines are for major banks such as BNP Paribas and Societe Generale.
Market movements in French long-term interest rates stabilize during the morning. Bloomberg notes that the market has already priced in political instability. The costs of the French ten-year interest rate are roughly at the same level as Italy's, which historically has had a significantly higher risk premium than France. The difference between French and German 10-year interest rates stabilizes but is at its highest level for the year.
The euro weakens against the US dollar.
