Paris: European stocks closed steady at the end of trading Monday, with semiconductor manufacturers gaining, recouping losses following the unexpected resignation of French Prime Minister Sebastien Lecornu. The pan-European Stoxx 600 index closed flat, briefly hitting a record high during today’s session after rising more than 2.8 percent last week.

According to Qatar News Agency, French stocks fell 1.4 percent, marking their biggest one-day drop since August and ending a six-day winning streak. This decline followed Lecornu’s abrupt resignation just hours after the new government was unveiled. The political uncertainty in France led to a rise in French bond yields, with 10-year bonds reaching a one-week high, while the euro experienced a weakening.

Investors are exercising caution regarding France’s fiscal health, given that the country has the largest budget deficit in the eurozone, nearly double the European Union’s 3 percent minimum threshold. Meanwhile, shares of European semiconductor manufacturers showed a positive trend after a chip supply deal between AMD and OpenAI. Notably, BESI saw a significant increase of 12.4 percent, while ASML’s shares rose by 2 percent.