European Stocks Plunge as French Borrowing Costs Surge

European stock markets experienced a sharp selloff on October 22, 2026, driven by escalating concerns over French fiscal risks and rising bond yields. The Eurostoxx fell 1.5%, with the French CAC 40 and Spanish IBEX both dropping 1.4% and Germany's DAX declining 1.0%.

Moody's Ratings is scheduled to conduct a sovereign credit rating review of France, which has intensified market volatility. French 10-year borrowing costs surged above 5% for the first time since 2002. The yield spread between France and Germany exceeded 160 basis points, reaching levels comparable to the Eurozone debt crisis.

This regional instability coincides with a broader global downturn. Asian equities declined and U.S. futures fell due to ongoing concerns regarding artificial intelligence.