iShares MSCI France ETF

EWQ

Market cap $407M

Maximilian Uleer, Deutsche Bank head of European equity and cross asset strategy, joins CNBC's 'Money Movers' to discuss outlooks on European markets.

France is an underappreciated export powerhouse whose listed companies reap three-quarters of their sales beyond its borders. Of the top 10 names in the index, only BNP Paribas could be considered domestic-facing.

European stocks are expected to open lower on Tuesday, reversing largely positive sentiment at the start of the week.

European stocks are expected to open mostly higher Monday as markets keep a close eye on a new trade dispute between the U.S. and China.

European stocks are expected to hover around the flatline at the open on Wednesday as markets lack direction during a difficult week.

iShares MSCI France ETF faces significant risks due to France's political instability, economic stagnation, and government dysfunction. EWQ offers attractive valuation metrics, including a low P/E ratio and well-diversified holdings, but these are outweighed by macroeconomic and political headwinds. Persistent gridlock, high debt-to-GDP, weak wage growth, and demographic challenges undermine France's near-term investment outlook.

European stocks are expected to open mixed on Tuesday with all eyes on France after the resignation of Prime Minister Sebastien Lecornu.

John Plassard, partner and head of investment strategy at Cité Gestion, discusses the market ramifications of French Prime Minister Sebastien Lecornu's resignation.

Economists polled by Reuters had expected the rate to remain unchanged from July, at 2%.

French bond yields have risen significantly against German bunds and are likely to stay elevated or potentially move higher. The European Central Bank still appears to be a reliable backstop against excessive bond turmoil.