French Market Angst Intensifies for Second Day as Risks Grow

French assets came under pressure for a second day as concern the government will fall in a showdown over proposed budget cuts rattled investors.

The benchmark stock gauge slumped as much as 2.2%, extending losses from Monday when Prime Minister Francois Bayrou announced that he would call a confidence vote in his own government. It pared losses to 1.5% by 4:45 p.m. in Paris. The yield difference between French and German 10-year debt — a key measure of risk — hit its widest since April.