European stocks close lower, affected by election results

After the earthquake of the European elections, and the launch of the electoral campaign in France, with attention focused on the extreme right, European stocks closed lower.

The Paris Stock Exchange topped European markets’ losses at the opening on Monday, as French President Emmanuel Macron called for early elections after his coalition lost to the far right in the European Union elections.

According to CNBC, the European Stoxx 600 index closed down by 0.35%, and food and beverage stocks led the losses, down 1.3%.

The German DAX index fell by about 0.37%, the French CAC index lost by about 0.32%, while the British FTSE index fell by about 0.20%.

The euro fell by 0.51% against the US dollar and 0.57% against the British pound.

The euro fell to its lowest level in almost a month. Asian currencies also fell following the publication of a stronger-than-expected US jobs report last Friday.

The single currency fell by about 0.3%, and French bond futures also fell. Macron called for early legislative elections in his country after a far-right party won the European elections, as expected.

Shares of BNP Paribas, the largest bank in France, fell about 8% at the opening, with the stock subsequently trading down 5% by 0712 GMT, while shares of other French banks such as Credit Agricole and Société Générale suffered heavy losses.

European financial markets witnessed notable turmoil, as the spread between Italian and German bond yields widened significantly, reflecting growing concerns about financial stability in the Eurozone. At the same time, France’s largest bank suffered a huge loss of 8%; Which added more anxiety among investors. These developments came in the wake of the right’s victories in the European Union elections, which in turn shook bond and stock markets, adding to the uncertainty in the markets.