Stock Market Crash: Europe's stock market crashes

News Topical, Digital Desk : European stock markets were weak on Tuesday morning. The French stock market was the worst hit, as traders fear the French government could fall next month. The CAC 40 index initially fell more than 2%, but later the decline reduced to 1.75%.

His plan includes- freezing welfare and pension spending. Keeping tax brackets at 2025 levels. There is a controversial proposal to remove two public holidays (on which he can back out).

Expert opinion- Wells Fargo's Erik Nelson said that the outlook for French assets is not good. But it is not certain that the Bayrou government will fall. There is still scope for a deal with the opposition. European stocks and the euro have remained a "momentum trade" this year, and now investors are booking profits.

The rest of Europe's markets - FTSE 100 (UK) and DAX (Germany) - both have fallen by about 0.5%. Puma's shares jumped 16% on Monday (on the news of a possible sale), but fell 1.75% on Tuesday. America has also been a reason for the decline in Europe. Donald Trump claimed on social media that he has sacked Fed Governor Lisa Cook. Cook replied - Trump does not have the right to remove me, I will not resign. Now the matter can lead to a legal dispute. Trump has been pressuring the Fed to cut rates for months, he even threatened to remove Fed Chair Jerome Powell several times.

What to look forward to - Data and earnings will be light this week. French consumer confidence data will come on Tuesday, inflation data of many countries including France, Germany, Italy will come on Friday. At the same time, in America, everyone's eyes will be on Nvidia's earnings (Wednesday). Political instability in France + pressure of budget cuts and Fed drama in America - both together have shaken the European stock markets. At present, investors are in a "Wait & Watch" mood and volatility may increase.