1104 GMT - French banking shares should continue to recover losses incurred following a recent selloff, RBC Capital Markets says in a research note. Stocks slid recently after the announcement of a confidence vote in the government, but they should recover even if the vote passes on Monday. Shares might react but should move on quickly to ignore political risks, analysts add. "There does not appear to be an easy fix on how the political impasse can be overcome to provide more visibility on the economic outlook," analysts note. After the vote, focus will shift to risks on the horizon, which include the failure of agreeing on a 2026 budget by year-end to avoid further widening bond spreads and a hit to economic prospects. This can hurt banks' performance though their diversification somewhat insulates them from such risks, RBC says. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

September 05, 2025 07:04 ET (11:04 GMT)

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