French shares tumble as government collapses

About this update from Svenska Cellulosa Ab Sca Class A

FRENCH SHARES TUMBLE AS GOVERNMENT COLLAPSES French shares tumbled on Monday after the new PM Sebastien Lecornu resigned from his post, marking another deepening of France's political, and fiscal, crisis. The CAC 40 EURONEXT:PX1 is down 2%, while an index of French small- and mid-cap stocks (.CACMS) is lower by 2.9%. Banks are the biggest laggards. Societe Generale EURONEXT:GLE, Credit Agricole EURONEXT:ACA and BNP Paribas EURONEXT:BNP are all down between 5.3%-7.1%.Lecornu's resignation came just hours after announcing his new cabinet, after opposition parties threatened to topple his government, and puts France's precarious fiscal position back in focus.The French news has weighed on broader European stocks, with the pan-continental STOXX 600 TVC:SXXP down 0.4%. Britain's FTSE CURRENCYCOM:UK100 and Germany's DAX XETR:DAX are both down about 0.1%. In corporate news, France's SEB EURONEXT:SK, the maker of Tefal pans and other kitchenware, is the biggest laggard, down 20% after it warned on profit following weak demand in the U.S. and Europe. Shares in British paper and packaging firm Mondi LSE:MNDI are down 14% after the company flagged a difficult trading environment. The warnings also weighed on Nordic forestry firms Stora Enso OMXHEX:STEAV, UPM OMXHEX:UPM and SCA OMXSTO:SCA_A. Here's your opening snapshot: (Samuel Indyk)*****EARLIER ON LIVE MARKETS:EUROPE BEFORE THE BELL: FUTURES STEADY, JAPAN SURGES CLICK HEREPOLITICS DOMINATE MARKETS, FROM JAPAN STOCKS TO BITCOIN CLICK HERE

View stock analysis, news, and events for Svenska Cellulosa Ab Sca Class A