French, Federal Reserve Politics Damp European Bourses Midday

07:54 AM EDT, 08/26/2025 (MT Newswires) -- European bourses, led by Paris, tracked lower midday Tuesday after France's Prime Minister Francois Bayrou called for a confidence vote that could unseat the national government as early as September.

There were also concerns following reports that US President Donald Trump has ousted Federal Reserve board member Lisa Cook, citing mortgage fraud allegations. Cook has challenged the president's authority to do so.

Bank and property stocks led declines on continental exchanges, while food issues held firm.

Investors also eyed muted Wall Street futures, and lower closes overnight on Asian exchanges, with tech shares slipping.

In economic news, yields on 10-year French national bonds struck 3.51%.

The pan-continental Stoxx Europe 600 Index was off 0.6% mid-session.

The Stoxx Europe 600 Technology Index was down 0.2%, and the Stoxx 600 Banks Index lost 2.1%.

The Stoxx Europe 600 Oil and Gas Index was off 0.2%, but the Stoxx 600 Europe Food and Beverage Index held steady.

The REITE, a European REIT index, fell 1.1%, while the Stoxx Europe 600 Retail Index was down 0.5%.

On the national market indexes, Germany's DAX was down 0.4%, and the FTSE 100 in London lost 0.5%. The CAC 40 in Paris was off 1.5%, and Spain's IBEX 35 eased 0.8%.

Yields on benchmark 10-year German bonds were lower, near 2.74%.

Front-month North Sea Brent crude-oil futures were down 1.6% at $67.13 a barrel.

The Euro Stoxx 50 volatility index was up 4.6% to 17.66, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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