Markets: Paris drags Europe into the red as French debt comes under pressure

Weekend violence across France, which led to about 2,400 arrests and left nearly 1,000 police officers and gendarmes injured, renewed investor concerns ahead of Moody’s review of the country’s rating on Friday. Around 12:00 GMT on Monday, Paris’s CAC 40 fell 1.58%, while Frankfurt, London, Milan and Madrid lost between 1.28% and 1.86%. The gap between French and German 10-year borrowing costs widened to 146 basis points from 137 on Friday, with the French yield reaching 4.89%. Analysts warned that political and social tensions could make deficit-reduction measures harder to implement and push the spread higher.