STOXX 600 down 0.3, France CAC 40 down 1
Grifols tumbles as Brookfield plans to drop takeover plan
UK39;s EasyJet rises on upbeat 2025 capacity forecast

Nov 27 Reuters French stocks dropped to an over threemonth low on Wednesday, knocked down by investor dread over the new government and its budget, while continued worries over the impact of Trump39;s proposed tariffs kept European automobile stocks under pressure.

The panEuropean STOXX 600 was down 0.3 as of 0930 GMT, after snapping a threeday winning streak on Tuesday.

France39;s main stock index dropped more than 1, sharply lagging its regional peers, with lenders BNP Paribas, Societe Generale and Credit Agricole falling between 2 to 3.4.

French bonds also took a hit, driving the premium the government must pay for longterm borrowing to its highest since 2012.

Over the next couple of weeks, we will continue to see elevated headline risks surrounding the French budget for 2025, asset manager DWS wrote.

Farright leader Marine Le Pen has been threatening to topple the government in disagreement with measures to cut spending and raise taxes in the budget.

Both parties together have a majority in the parliament. Following last summer39;s snap elections, President Macron cannot dissolve parliament again until June 2025. The base scenario, at least until then, remains a lot of political noise and little progress.

Investors also continued to worry about the next potential target of tariffs, after U.S….