European stocks fell at the start of trading on Monday as France faced the economic fallout from a weekend of violent protests, looting and damage to businesses. Investors also weighed concerns over French government debt, while shopkeepers and business leaders accused authorities of failing to protect their stores and staff.
The pan-European Stoxx 600 fell more than 0.6% in early trading, while the Euro Stoxx 50 slipped 0.1%. France’s CAC 40 dropped 0.5%, with shares in supermarket group Carrefour losing more than 2% after the company reported that 50 of its stores had been targeted by looters.
The declines extended across much of Europe. Germany’s DAX fell more than 0.8%, making it the weakest performer among the major indexes mentioned in early trading. The UK’s FTSE 100, Italy’s FTSE MIB and Spain’s IBEX 35 each lost between 0.4% and 0.6%. The Netherlands’ AEX bucked the trend, rising more than 0.4%.
France’s financial pressures also remained in focus as lawmakers prepared to debate the country’s 2027 budget. The yield on France’s 10-year government bonds stood at 4.86%, following a rise earlier in October to its highest level since 2002. The difference between French and German 10-year borrowing costs, closely watched as a measure of investor concern, reached 143.5 basis points after exceeding 150 basis points earlier in the month. The spread had not been this wide since the eurozone debt crisis.
Moody’s is scheduled to review France’s Aa3 credit rating on Friday. The rating carries a negative outlook, reflecting concerns that could put further pressure on the country’s borrowing costs.
The euro also weakened against major currencies on Monday, falling 0.2% against the US dollar to around $1.121 and 0.2% against the British pound to approximately £0.841. The currency had already fallen to its lowest level against the dollar since mid-May 2025 and against the pound since early June 2025 during the previous week. Concerns about France’s debt position and a stronger dollar have outweighed the impact of two European Central Bank interest rate increases this year. The ECB is due to meet again on 29 October.
The market reaction came as French businesses began assessing losses following nationwide demonstrations on Saturday against rising living costs and conditions in state schools. Authorities estimated that about 550,000 people took part in the marches, which escalated into rioting and looting in Paris, Lyon, Marseille, Bordeaux and other cities.
Interior Minister Laurent Nuñez said 2,400 people had been arrested. Reports put the number of injured police officers, gendarmes and firefighters at between 500 and nearly 1,000.
Nuñez acknowledged that the authorities had failed to anticipate the scale of the unrest and had lost control in some cities. He offered to resign, but President Emmanuel Macron rejected the offer, according to the president’s office on Monday. The presidency argued that maintaining clear and continuous leadership of the security forces was necessary during the crisis.
En ce #17octobre, face aux images de violence et de destruction qui frappent notre pays, je refuse de rester silencieux.
Quand nos magasins @Lacoste et @aiglefr sont pillés, comme tant d’autres commerces à travers la France, ce ne sont pas seulement des vitrines que l’on brise. https://t.co/ZLlAqhOm8L
— guibert thierry (@tguibert) October 17, 2026
The damage has prompted an increasingly forceful response from France’s business community, with retailers warning that the cost of repairing stores and replacing stolen goods could reach hundreds of millions of euros.
Carrefour chief executive Alexandre Bompard, who also heads the French retail federation FCD, said around 1,500 shops had been affected. He called on the state to protect businesses and their employees as the sector calculated its losses.
At Carrefour, the repair bill alone is expected to exceed 10 million euros, Bompard said.
Fashion retailer Lacoste was also among the businesses affected, with its stores and those of its sister outdoor brand Aigle looted. Lacoste chief executive Thierry Guibert called on the French state to take immediate action to protect businesses and staff. Thierry Cotillard, head of supermarket chain Intermarche, expressed his anger over the violence, while Patrick Martin, president of employers’ organisation Medef, condemned the looting as unacceptable.
Smaller businesses reported difficulties obtaining help during the unrest. The head of outdoor retailer Snowleader said he contacted police after looters forced open the door of the company’s Lyon store but was told to wait and follow up on Tuesday if officers did not arrive. In Marseille, the head of the city-centre traders’ association said shopkeepers had been left without adequate support from the authorities.
The government was preparing a response on Monday. Prime Minister Sebastien Lecornu was due to chair a crisis meeting, while Commerce Minister Serge Papin planned to meet representatives of trade federations, banks and insurance companies to discuss the impact on businesses.
The unrest has added to the pressure on a French economy already facing scrutiny over public finances and political divisions surrounding the next budget. For retailers, the immediate concerns are the cost of repairs, lost stock and the protection of employees and premises as the government comes under pressure to restore order.
Meanwhile, trade unions have called a nationwide strike for 5 November, signalling that protests over the cost of living and public services are likely to remain a major challenge for the government in the coming weeks.
