RSS CAC 40 Slides Amid Political Turmoil

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 RSS CAC 40 Slides Amid Political Turmoil

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French stocks experienced a slight decline on Tuesday due to escalating political and economic issues in both Germany and France. On Monday, the National Assembly enacted a special law that empowers the government to sustain core state functions without a 2025 budget, effectively averting a U.S.-style government shutdown for now. This interim measure will remain in place until the country's deeply divided parliament approves the forthcoming budget proposal from the newly formed Bayrou government, anticipated in early 2025.

Additionally, the nation's central bank revised its 2025 growth outlook downward, from 1.2% to 0.9%, citing "increased uncertainty" in the economic forecast. The CAC 40 index declined by 10 points, or 0.1%, to 7,348, following a 0.7% drop in the previous trading session. However, Airbus shares rose by 1.5% after Deutsche Bank upgraded its stock rating from "hold" to "buy."

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