European shares opened flat on Wednesday as investors prepared for a crucial no-confidence vote by French lawmakers that is expected to remove Prime Minister Michel Barnier’s government.
The pan-European STOXX 600 index was up 0.1% at 0810 GMT, on track for its fifth consecutive day of gains after closing at a one-month high on Tuesday. Germany’s DAX rose 0.5%, while France’s CAC 40 was up by 0.05%.
The retail and tech sectors led the gains, advancing by 0.8% and 0.6%, respectively.
French lawmakers are set to vote on no-confidence motions that, barring any last-minute surprises, are likely to oust Barnier’s government amid the country’s struggle to address a large budget deficit. The debate is scheduled to start at 1500 GMT, with voting expected shortly thereafter.
Barnier has expressed willingness to engage in budget talks with Marine Le Pen’s far-right National Rally (RN) and other political parties, and remains hopeful of surviving the vote.
Paris-listed shares of Stellantis (NYSE:STLA) rose over 1%, supporting France’s CAC 40, following a report that Apple’s outgoing CFO Luca Maestri could become the new CEO of the Italian-French automaker, though the company later denied these claims.
On the economic front, the euro zone is expected to release its monthly PMI and producer prices data later in the day.
