French stocks rise, banks lead gains
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Dec 5 Reuters European stocks closed at a more than onemonth high on Thursday, aided by bank stocks as investors hoped a new budget could be passed in France after Prime Minister Michel Barnier39;s government was toppled.

The panEuropean STOXX 600 finished 0.4 higher, logging its sixthstraight session of advances. France39;s CAC 40 came off a threeweek high and ended 0.3 higher.

The euro STOXX39;s volatility index dropped 5.2 to touch a threemonth low.

An index tracking banks in the currency union led sectoral gains with a 3.2 advance as the risk premium investors demand to hold French debt rather than German Bunds eased further from a 12year high.

Major French lenders also rose, with BNP Paribas, Societe Generale and Credit Agricole up between 2.3 and 4.3.

Investors took comfort from remarks by Marine Le Pen of the farright National Rally RN, which voted to oust Barnier, saying that she had no plans to seek the removal of President Emmanuel Macron and that a budget could be passed within weeks.

Barnier, the shortestserving prime minister in modern French history, resigned on Thursday after he failed to find enough support for a budget aimed at taming a wide deficit, but could stay on as caretaker until a new government is formed.

President Macron is expected to deliver a televised address to the country at 1900 GMT.

Macron is in a…