France's banking stocks experienced a significant decline on Wednesday, trailing behind their European counterparts due to concerns over sovereign bond risks.
The political impasse has led to a rise in French bond risk levels, similar to those seen during the euro-area debt crisis, which has alarmed investors.
BNP Paribas, the largest lender in France by market capitalization, saw its shares drop by up to 3%. Societe Generale faced a steeper decline of 4.4%, while Credit Agricole's stock slipped by 2.8%. These movements positioned them among the worst performers in the European financial sector, reflecting the market's growing unease about the stability of French bonds.