French Unrest Drives Fiscal Risk Concerns; AI Earnings Season Begins

French riots across the country caused the CAC 40 to decline, and the fear that France will struggle to reduce its government budget deficit encouraged sellers of French bonds, pushing the 10-year yield up nearly 6 basis points. Concerns over France's civil unrest and massive debt load caused the euro to fall, while the Swiss franc rose to a three-month high. Separately, Meta and Tesla are scheduled to report earnings on Wednesday, which will help investors assess the enthusiasm for the artificial-intelligence trade.

The unrest in France raises fiscal risk concerns across the eurozone, leading to a decline in European shares and pressure on the euro. Meanwhile, the upcoming earnings reports from technology companies like Meta will provide a key indicator of whether the artificial-intelligence trade can generate renewed market enthusiasm.