European stocks close at their highest level in a month, supported by the banking sector

The European STOXX 600 index closed up 0.4 percent, making gains for the sixth session in a row. While France’s CAC 40 index fell from its highest level in three weeks during trading to close up 0.3 percent.

A sub-index of banking shares led gains among sectors, rising 3.2 percent, as the risk premium demanded by investors to hold French debt over German bonds fell from a 12-year high.

Shares of French banks BNP Paribas, Societe Generale and Credit Agricole rose between 2.3 and 4.3 percent.

Marine Le Pen of France’s far-right National Assembly party, which voted to withdraw confidence in Barnier, said she had no intention of seeking the ouster of President Emmanuel Macron and that the budget could be approved within weeks. Le Pen’s comments helped calm investors.

Barnier resigned after the shortest mandate in history France Al-Hadis, today, Thursday, after he was unable to get enough support for a budget aimed at controlling the large deficit, but he can remain acting prime minister until a new government is formed.

President Macron is expected to deliver a speech at 19:00 GMT.

Political uncertainty in France has weighed on the CAC 40 since Macron called early elections in June. The index is the worst among the major European markets.

Germany’s DAX index rose 0.6 percent to close at an all-time high above 20,000 for the third day in a row, despite the fragility of the economy and political situation.