French stocks are currently facing significant challenges, experiencing their worst performance since 2010. Despite a brief relief rally, the CAC 40 Index is down 1.5% for the year, underperforming compared to other major European markets.

The decline is largely attributed to political instability caused by President Emmanuel Macron's decision to call a snap general election in June. This has led to concerns among investors, as France deals with a prolonged political crisis and strained public finances, which may discourage long-term investment.

The country's economic outlook and investor confidence moving forward are also being questioned due to the stark contrast in performance compared to global markets, which have generally yielded double-digit returns this year.