European stocks slide after Macron calls snap election
Istanbul, June 10 (Hibya) - European stocks fell on Monday morning as traders reacted to initial results from the EU Parliament elections and the surprise call for parliamentary elections by French President Emmanuel Macron.
Early EU election results indicate that populist, far-right parties could significantly influence European policymaking over the next five years.
The pan-European Stoxx 600 index was down 0.6 percent at 9:50 a.m. London time, with construction stocks leading the losses, down 1.4 percent. The euro slipped 0.4 percent against the U.S. dollar and 0.3 percent against the British pound.
The French CAC 40 was down 1.9 percent, with French banks sharply lower following the shock news. Societe Generale and BNP Paribas shares fell 7 percent and 4 percent, respectively.
Asia-Pacific markets were mixed, with a few closed for a holiday Monday, including Australia, mainland China, Hong Kong and Taiwan. Meanwhile, U.S. stock futures changed a little after a winning week.
Given that the centre-right held onto a majority and far-right gains had been widely forecast, the snap French election “spooked the market” on Monday, according to analysts. The EU election results “are a blow to Macron’s credibility and pro-EU stance,” they added.
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