The French stock market plunged by 2%, putting the government at risk of collapse.

European stock markets opened sharply lower on Tuesday, with the French stock market leading the decline. Traders are paying attention to the potential vote of no confidence that the government may face next month. The three main opposition parties in France have stated that they will not support Prime Minister Franois Beru in the vote of no confidence scheduled for September 8. The government needs to receive more than half of the vote of confidence in order to continue in power. The country's CAC 40 index plummeted over 2% in early trading.