Riots in France hit luxury brands, retailers and insurers as European stocks tumble

All three stocks were lower by Thursday. LVMH was down 2.3% since last Friday, before the riots, while Kering and Hermès fell 1.6% and 3.6%, respectively, according to Yahoo Finance data.

Several luxury boutiques were damaged or looted during the riots. The Financial Times reported that stores operated by Louis Vuitton, Hermès, Dior and Burberry were among those affected.

In Marseille, a Louis Vuitton boutique was burglarized, while an AlphaValue analyst cited by MarketScreener reported extensive damage to roughly a dozen luxury stores along Paris’s Rue du Faubourg Saint-Honoré, including Dior and Balenciaga.

The damage extended beyond luxury retailers. French supermarket giant Carrefour (EPA:CA) reported damage to 50 stores, including 20 that were looted, according to Euronews. Its stock fell more than 2% on Monday.

Insurers also saw their shares fall amid concerns about the cost of covering the damage. French insurer AXA (EPA:CS) fell 1.3%, while reinsurer SCOR (EPA:SCR) lost 0.9%. In Italy, Generali (BIT:G) dropped 2.3% and Unipol (BIT:UNI) shed 3.2%.

Euronews reported that authorities arrested more than 2,400 people during the unrest. Retail industry representatives initially estimated losses at several hundred million euros, although the final cost remains unknown.

The selling spread beyond individual companies. Major stock indexes in France, the U.K. and Spain fell more than 1%.

French riots add to fears over mounting government debt

The unrest comes as lawmakers struggle to agree on a budget to reduce France’s mounting deficit. As Al Jazeera and Reuters reported, the protests began over deteriorating school conditions before expanding into broader demonstrations over the cost of living and proposed government spending cuts.

Concerns about whether parliament can agree on a budget have also weighed on French government bonds. According to The Wall Street Journal, yields on France’s benchmark 10-year bonds, known as OATs, surged to 5.142%, the highest level since 2002.

France has experienced the sharpest rise in borrowing costs among G7 countries, according to The Telegraph. Its 10-year OAT yield has climbed more than 180 basis points since Feb. 27, the day before U.S. strikes on Iran began.

Rising yields make it more expensive for France to finance its debt. Government debt is expected to reach nearly 122% of GDP next year, a new record, even as officials propose 54 billion euros ($61 billion) in spending cuts, according to Fortune. The budget is still expected to exceed European Union deficit limits.

The figures have revived comparisons with Europe’s sovereign debt crisis more than a decade ago, although Goldman Sachs sees less risk of a repeat.

“The risks of disorderly market escalation and real economy contagion look notably lower. But the fundamental fiscal challenges for some countries — especially in France — look harder now than in 2011-15,” Goldman Sachs said, according to The Guardian.

What France’s turmoil means for investors looking overseas

International stocks outperformed Wall Street by a wide margin in 2025, giving American investors a reason to diversify beyond the S&P 500. The MSCI EAFE Index, which tracks developed markets outside North America, gained roughly 32%, according to Moneywise. By comparison, the S&P 500 rose nearly 18%.