What happened
French President Emmanuel Macron has called a crisis cabinet meeting for Monday as wildfires threaten the southwestern city of Bordeaux. The blaze is now about 15km from the city, according to Bordeaux mayor Thomas Cazenave, who said there are currently no plans to evacuate the city's population of roughly 850,000. A new heatwave is expected to complicate firefighting efforts, with temperatures potentially reaching 40°C from Tuesday.
Why it matters for the market
Wildfires have been raging across Europe, particularly in France and Spain, with more than 330,000 people evacuated from both countries. In France's Gironde region, the fire has created an unprecedented 'pyrocumulonimbus' – a giant fire thunderstorm fueled by its own winds and lightning. Firefighters describe the situation as a David-versus-Goliath scenario, unable to fight the blaze directly due to its erratic movement.
Since the start of the year, about 98,000 hectares have been scorched in France, with 42,000 hectares burnt in the southwest alone – one of the largest forest fires since World War Two. Over 220,000 people have been evacuated from the region. Interior Minister Laurent Nuñez called the situation 'very unfavourable.'
In Spain, a new fire near Valencia forced around 15,000 people to flee. The blaze in the Ávila region is described as the largest in Spain's recent history, with around 77,000 hectares affected. Spanish Prime Minister Pedro Sanchez warned of 'difficult hours ahead' and called for a national climate emergency pact. King Felipe VI toured an emergency shelter, noting the 'incalculable' damage to natural heritage.
What traders should watch
Evacuees like Olga Congacha, 50, described the panic of fleeing her home near Madrid. Authorities are monitoring winds pushing fires away from the capital but continue evacuating villages in the path. More than 90,000 people have been evacuated around Madrid and Ávila.
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