According to strategists at Goldman Sachs, French stocks are facing heightened political risk in the coming weeks and months, particularly in certain sectors. The Paris CAC 40 index saw a significant drop of over 6% last week, the worst performance since March 2022, following the announcement of a snap election. Concerns over a potential victory for the far-right National Rally and populist fiscal policies have rattled markets, leading to an increase in borrowing costs and a widened spread between French and German bond yields. Goldman Sachs predicts that this spread will continue to remain wide, putting pressure on domestic stocks, especially banks. French blue-chip companies such as Carrefour, Vinci, and Engie may face challenges, while international giants like LVMH, L'Oreal, and Remy Cointreau could also be impacted.