Europe close: Stocks slip as Macron calls surprise parliamentary elections

10th Jun 2024 16:00

(Sharecast News) - European shares were slightly lower at the start of the week as investors assessed the impact of gains made by far-right political parties in European Parliament elections.

In particular, they were digesting French President Emmanuel Macron's decision to call a snap poll in response to his party suffering a heavy defeat at the hands of Marine Le Pen's National Rally.

The pan-regional Stoxx 600 index was down 0.27% at 522.16, although by the end of trading it had managed to pare a large part of its losses.

France's CAC 40 on the other hand slumped 1.35% to 7,893.98.

The euro also slumped to its lowest level for a month, falling 0.44% against the US dollar to $1.0755.

Market sentiment was also hampered by stronger-than-expected US jobs data published during the previous Friday that showed hiring and wage growth picked up in May - a cause for concern for the Federal Reserve as it plots a path for interest rate cuts this against a backdrop of persistent inflation.

Eyes will turn to the Fed, which starts its two-day policy meeting on Tuesday and will announce its latest decision on interest rates a day later. A CPI update for May is also due the same day.

In equity news, French banks all fell amid the political turmoil caused by Macron's electoral gamble. Societe Generale dropped 7%, alongside a 5% tumble over at BNP while Credit Agricole gave back 4%.