Widespread protests in Europe shake financial markets and stock exchanges

A wave of social unrest and protests spreading across Europe to France, Spain, Italy, Portugal, and Albania shook financial markets on Monday, October 19. While stock market losses reached 2%, France's 10-year government bond yield reached 4.86%.

Demonstrations that began due to education and living costs in France, a housing crisis in Spain and Portugal, the high cost of living in Italy, and corruption and unemployment in Albania have affected economic stability. While the detention of more than 2,400 people in France increased investor concerns, Paris Stock Exchange's CAC 40 index dropped by 1.38% and the country's 10-year bond yield rose by approximately 8 basis points to 4.86%. Reactions to the housing crisis in Spain and expectations of early elections on November 29 pushed Madrid Stock Exchange's IBEX index down by 1.34%. In Italy, following the high cost of living protests in Milan, the FTSE MIB index started the day with a 1.08% decline. In Portugal, housing prices surging by 124% between 2015 and 2024 exacerbated young people's housing access problems, while demonstrations in Albania affected the investment environment. While the STOXX 600 index fell by 0.79%, experts stated that it is not possible to attribute all market losses solely to the protests, noting that global tech sell-offs and energy prices were also influential.