Following the French government’s announcement that it would abandon a proposed budget reform as a compromise to its far-right coalition partner, European stocks steadied Monday. This improved investor mood generally and put US stocks on course for a little increase.
The French government announced Monday that no changes to drug payments will be made in 2025, rejecting prior intentions to tighten the system as part of a broader savings push.
While US stock index futures turned slightly positive, indicating that benchmark indices could move over Friday’s record-high close, European markets continued to gain, bolstered by a recovery in France.
The financial problems won’t go away, but they also won’t knock the house down anytime soon, according to Chris Beauchamp, chief market analyst at IG Markets.
“It’s understandable – the risk-on move from key assets, hoping this might lead to some kind of agreement.” The dollar received a boost over the weekend when US President-elect Donald Trump cautioned BRICS emerging nations against attempting to replace the greenback with any other currency. The euro itself saw little reprieve, falling 0.6% to $1.05095.
The National Rally (RN) in France had threatened to support a no-confidence resolution unless Prime Minister Michel Barnier acceded to the far-right party’s requests for concessions in his planned budget by Monday.
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