CAC 40 Edges Higher After Italian Election Results

French stocks edged higher on Monday, though a cautious undertone prevailed amid concerns about a possible recession.

Euro zone government bond yields hit fresh multi-year highs amid a fresh sell-off in British gilts after Chancellor of the Exchequer Kwasi Kwarteng announced the biggest package of unfunded tax cuts.

The spread between Italian and German yields widened after the rightist coalition won a clear majority in Sunday's general elections.

The benchmark CAC 40 was up 21 points, or 0.4 percent, at 5,804 after plummeting 2.3 percent on Friday.

Valneva SE shares jumped more than 4 percent. The vaccine maker focused on infectious diseases said it is in active discussions with a prospective partner for potentially funding the development of a potential second-generation COVID-19 vaccine. These ongoing talks may continue for several months and may not lead to an agreement, it said.

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