(Bloomberg) -- French stocks stand out as losers among major peers after a year of political upheaval, ending 2024 with a loss while most European and US benchmarks notched double-digit gains.

The CAC 40 index declined 2.2% this year, compared with gains of 19% for Germany’s DAX, 15% for Spain’s IBEX, and 13% for Italy’s FTSE MIB.

When President Emmanuel Macron called a snap parliamentary election in June in an attempt to rebound from a harsh defeat in the European elections, he set up a chain of events which led to budget deadlock, a sovereign rating cut and a steep discount on French stocks and bonds.

The political turmoil drove the yield spread between French government bonds and their German counterparts to the widest since 2012 and hit financial stocks and others focused on the domestic economy.

The CAC 40 was also challenged by its heavyweight luxury stocks as Chinese shoppers scaled down spending on high-end handbags and skincare. Industry giants LVMH, L’Oréal SA and Kering SA are among the biggest losers on the French stock exchange, with Gucci owner Kering shedding 40%.

READ: French Billionaires Take Biggest Hit Ever on Luxury Goods Slump

It’s is too early to say whether the CAC 40 will rebound next year, said Vega Investment Managers’ Olivier David.

“Luxury remains dependent on China, so some stimulus there could provide a boost, and so could more visibility on the French political situation and the threat of new US tariffs,” David said. “This year was clearly disappointing, let’s hope we don’t get another similar one in 2025.”