Paris-listed stocks slid while yields on French government bonds jumped after the country was roiled by violent demonstrations over the weekend.

Nationwide protests Saturday over high energy prices and public school conditions devolved into rioting that continued Sunday. The riots come amid broader political and fiscal instability in the country which had already weighed on bonds and Paris-listed stocks.

"With France already facing a difficult fiscal backdrop and the 2027 election approaching, the weekend adds another layer of political risk for markets," Deutsche Bank strategist Jim Reid said.

The CAC 40 slid 1.4% as banks and rate-sensitive real estate stocks led declines. Societe Generale shares fell 2.7%, while BNP Paribas and Credit Agricole both dropped around 2.5%. Luxury retailers sold sharply, with sector bellwether LVMH dropping 2.2% after the company's stores were looted.

Elsewhere in the country's blue-chip index, Carrefour shares fell 1.8% after dozens of the chain's stores were ransacked by rioters. Chief executive Alexandre Bompard said 50 of the chain's stores had been looted during protests, with repair work expected to cost more than 10 million euros ($11.2 million).

In the bond market, spreads between French and German government bond yields widened to 145 basis points, the highest level in two weeks. Yields on 10-year French OATS jumped by over 10 basis points to trade close to 4.890%.

The situation in France also weighed on the euro. The single currency weakened 0.1% to $1.1224 against the greenback in morning European trade Monday.

Investors could turn against the euro if riots boost support for Euroskeptic presidential candidate Marine Le Pen, XTB strategist Kathleen Brooks said.