European Markets See Mixed Start as France Deals with Political Instability
European markets opened with a mixed tone on Friday, as investors assessed the aftermath of a major political development in France. The country’s prime minister, Michel Barnier, was ousted on Wednesday after a no-confidence vote, following his decision to push through a budget without a parliamentary vote.
President Emmanuel Macron, who accused politicians of neglecting voter interests, vowed to complete his presidential term, which runs until 2027. Barnier has agreed to remain in a caretaker capacity until Macron selects his successor.
In other news, British insurance giant Aviva announced a major deal to acquire rival Direct Line. The two companies have reached a preliminary agreement, with Aviva’s latest bid valuing Direct Line at 275 pence per share, a 73% premium over the closing price on November 27.
Oil prices edged lower amid concerns about weakening global demand, as OPEC+ announced an extension of its current supply cuts through 2025. At the time of writing, futures were trading at $68.26 per barrel, while futures were at $72 per barrel.