Economy

French shock election news adds to unease in event-packed week

Date: Jun 10, 2024

A sell-off in Europe set the tone for global markets on Monday as France's decision to call a snap election weighed on everything from the euro to banking stocks and government bonds.

Asia shares fell and United States stock futures pointed to a weak open on Wall Street, with an event-packed week that includes the release of US inflation data as well as Federal Reserve and Bank of Japan meetings adding to the cautious mood.

For now, it's the prospect of fresh political uncertainty in the euro zone's second-biggest economy weighing on sentiment after far-right gains in European Parliament elections on Sunday prompted a bruised French President Emmanuel Macron to call a snap national election.

The Euro fell to a one-month low against the Dollar, European stocks slipped 0.6%, eurozone bank stocks tumbled 2% while government bond yields in France and Italy jumped.

--Reuters--

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