The Taxman Deals Another Blow To French Markets

Already reeling from months of political chaos and a rout in luxury names, French investors now have a new worry: the threat of higher corporate taxes. 

As Bloomberg's Michael Msika writes, weighed down in recent months by the messy aftermath of June’s snap election, the CAC 40 has trailed major European equity benchmarks this year. It’s down nearly 1% while markets like Germany and Spain have notched double-digit gains. And while France now at least has a government, the breakthrough has been accompanied by a potential increase in corporate taxes.