France is undergoing some significant economic changes which have sparked riots recently. Typically, stock markets will rise when an economy undertakes positive changes and prices in the benefits. However, there is a fear of inflation sweeping across Europe and the ECB is not looking at the world through the same glasses as London and New York financial professionals. France does not have total freedom with regard to their fiscal budgets and monetary policy because they are a part of the EU so their hands are tied. This creates uncertainty which is holding back a rally in French equities.