Paris stock market falls sharply after EU vote shock

Paris stock market falls sharply after EU vote shock

The Paris CAC 40 drops more than 2% to 7,854.84 points before paring back some losses.

Paris stock exchange led European market losses in early trading after French President Emmanuel Macron called for snap elections. (Reuters pic)
PARIS:
The Paris stock exchange led European market losses at the open Monday as French President Emmanuel Macron called snap elections after his centrist alliance lost to the far right in EU elections.

The euro also fell against the dollar, dropping to US$1.0762.

“The outcome of the European elections have caused a ruction in European politics,” said Kathleen Brooks, research director at XTB trading platform.

“No one expected France to call parliamentary elections on the back of the EU elections, so the shock factor may weaken the euro and European stock markets at the start of the week,” she said.

The Paris CAC 40 dropped more than 2% before paring back some losses. It was down 1.8% at 7,854.84 points at around 0720 GMT.

The Frankfurt DAX shed 0.7% to 18,427,63, Milan was down 0.8% to 34,375.90 and Amsterdam fell 0.5% to 919.33.

The pan-European Stoxx 600 retreated by almost 0.7% to 520.11 points.

In non-EU Britain, the London FTSE 100 fell 0.6% to 8,199.38.

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