CAC 40 Drops 1.1% as French Bond Yields Surge to Highest Since 2002

France's CAC 40 index fell 1.1% on Thursday, trading at 7,832.76, down 89 points from its previous close of 7,921.68, as rising bond yields and political uncertainty weighed on investor sentiment. The yield on France's 10-year government bond jumped 2.2% overnight to 5.104%, the highest level since July 2002, amid political unrest and concerns over the country's fiscal position. Declining Wall Street futures added to the pressure, with only 11 of the index's 40 stocks trading above the flatline. Hermes International led losses with a 7.6% plunge, followed by BNP Paribas and STMicroelectronics, each down more than 3%. Danone topped gainers with a 1.5% rise. Meanwhile, France's manufacturing business climate index rose to 105 in October, its highest since July 2022, beating expectations of 101.