Despite the fall of Michel Barnier's government on 4 December, the Paris bourse rallied on 5 December, with the leading CAC 40 index up 0.65% after rising 0.66% the previous day.
The euro was also little changed. Earlier, France's main stock index CAC 40 opened slightly higher after French Prime Minister Michel Barnier's 3-month-old government collapsed following a historic vote of no confidence, Euronews reported.
Barnier, the shortest-serving prime minister in the modern French republic, and his government were ousted by a widely divided National Assembly.
The government collapsed over a widely debated budget that failed to win the support of far-right and left-wing politicians.
The market seems to have taken the news with relatively modest reactions. French bonds remained stable, with the 10-year bond yield at 2.886% on 5 December.
However, the no-confidence vote could be appreciated already at the beginning of this week, when investors started to show some concern about France's political trajectory. For the first time, French borrowing costs rose above those of Greece.
France's CAC 40 stock index was up a modest 0.59% at 9:30 a.m. CET, and shares of France's biggest banks were also trading higher.
BNP Paribas and Credit Agricole rose about 2 percent, while Societe Generale SA showed a gain of almost 3 percent on Dec. 5.| BGNES
