Investors watching Europe for discounted stocks relative to the United States or for the impact of ongoing turmoil in the energy sector may miss a critical problem: France's national debt is climbing to 120% of its GDP. Further, the country continues to run deficits well beyond the 3% limit set by the EU, and its 10-year sovereign bond yield recently reached an 18-year high. The European market seems increasingly skeptical that France will achieve fiscal stability without resorting to austerity measures or support from the European Central Bank.
Though the French market may feel far away for U.S. investors, a stress test on one of the world's largest economies could have fallout for domestic markets. As France faces these challenges, it may be time to take a closer look at two domestic financial market infrastructure firms that could benefit from a more volatile global financial landscape.
