French stocks send Europe's STOXX 600 lower on political uncertainty
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
French stocks at three-month lows
Aviva dips after JPM downgrade
Updated at 1550 GMT
By Sruthi Shankar and Shashwat Chauhan
June 10 (Reuters) -European shares fell on Monday, with French stocks hit after President Emmanuel Macron called a snap election following a heavy trouncing of his allies in European Union parliamentary elections.
France's blue-chip CAC 40 index .FCHI fell 1.4% to touch a more than three-month low, with lenders, including BNP Paribas BNPP.PA, Societe Generale SOGN.PA and Credit Agricole CAGR.PA, falling by between 3.6% and 7.5%.
French bond prices also fell FR10YT=RR, pushing yields on the 10-year note to their highest level in more than six months after eurosceptic nationalists made gains in European Parliament elections on Sunday. GVD/EUR
Macron's unexpected decision to call an election could hand major political power to the far right after years on the sidelines, putting Marine Le Pen's National Rally (RN) party in charge of the domestic agenda, including economic policy.
"The European election results raise the possibility of RN becoming the largest group in the French parliament," economists at HSBC noted.
"If RN gains an absolute majority at the National Assembly, President Macron could be forced into a 'cohabitation' period and might have to appoint a prime minister from RN."
Shares in French motorway operators Eiffage FOUG.PA and Vinci SGEF.PA fell by more than 5% while airports group Aeroports de Paris ADP.PA and energy firm Engie ENGIE.PA shed 4.1% and 3.2%, respectively.
The pan-European STOXX 600 index .STOXX fell 0.4%, with other regional markets, including Germany's DAX .GDAXI and Spain's IBEX .IBEX down 0.4% each.
Most STOXX 600 sectors traded lower, with euro zone banks .SX7E the worst hit with a 1.6% drop, while oil and gas .SXEP was an outlier gaining 0.9% tracking higher crude oil prices. O/R
Equity markets came under pressure on Friday after a stronger-than-expected U.S. jobs report fanned worries that the Federal Reserve would not cut interest rates anytime soon.
On the other hand, the European Central Bank lowered its key rate by 25 bps from a record high to 3.75% at its policy meeting last week, but traders scaled back bets of two more rate cuts this year after it gave little hint of further moves.
ECB policymaker Peter Kazimir said in a blog post that the central bank should sit out the summer before contemplating another rate cut, while fellow policymaker Joachim Nagel likened the path for interest rates to a mountain ridge rather than a peak.
Among other stocks, UK insurer Aviva AV.L slipped 1.7% after JPMorgan downgraded the stock to "neutral" from "overweight".
Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; editing by Sohini Goswami and Jason Neely
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
