Investors are showing increasing reluctance to invest in French assets due to rising political tensions, which is causing concerns about the country's budget crisis.

This has led to fears of ongoing volatility, as S&P Global Ratings is expected to release an updated assessment of France, adding to the uncertainty surrounding the stability of the government.

The outflow of capital from France, the second-largest economy in the euro zone, has resulted in higher borrowing costs compared to other countries and a significant decline in stock performance.

The benchmark equity index is on track to have its worst annual performance relative to other European shares since 2010, reflecting the growing unease among market participants.