The Albany Gazette - European stocks, euro drop on EU vote turmoil

Paris spearheaded losses, tumbling by more than two percent at one point after Macron revealed late Sunday that he was dissolving the National Assembly, the French Parliament's lower house, and calling a general election.

Macron's political gamble came after far-right parties in France, including National Rally, managed to take almost 40 percent of the vote in France's EU poll.

The euro fell versus the dollar and pound in the wake of the news, while Frankfurt stocks slid and London also declined.

Europe's far-right parties were winners in many places, coming out on top in France, Italy and Austria, while Germany's AfD came second -- but still ahead of Chancellor Olaf Scholz's SPD party -- and the hard-right also did well in the Netherlands.

- Sea of red -

"The snap election called in France has added to the uncertain tides swirling around financial markets," said Susannah Streeter, head of money and markets at stockbroker Hargreaves Lansdown.

"Investors are assessing Macron's gamble in attempting to reassert his authority after voters shifted en masse to the far-right during the EU elections, in both France and Germany."

France will vote for a new National Assembly on June 30, with a second round on July 7, and with the Paris Olympics set to begin on July 26.

"A sea of red has greeted traders in Europe," added Scope Markets analyst Joshua Mahony on Monday.

"With that initial vote now less than three weeks away, it comes as no surprise to see weakness across French stocks and the euro as traders weigh up this fresh bout of uncertainty."

Global equities were already in the doldrums as a mixed jobs report on Friday had eased worries about the US economy -- but dented hopes of Federal Reserve interest rate cuts any time soon.

With the Fed meeting this week, investors are keenly awaiting its updated "dot plot" outlook for borrowing costs, with commentators split on how many, if any, reductions are in the pipeline.

"Stocks suffered a double blow as election worries combined with concerns that the Federal Reserve may not cut interest rates any time soon," noted City Index analyst Fiona Cincotta.

All three indexes on Wall Street ended lower Friday after data showed the world's biggest economy added far more jobs than estimated last month, though the broad-based S&P 500 and tech-heavy Nasdaq were still close to record highs.

The reading, which came after earlier figures in the week had indicated the labour market was finally softening, suggested there was still some way to go before the Fed would be comfortable with cutting borrowing costs.

- Key figures around 1050 GMT -

Paris - CAC 40: DOWN 1.7 percent at 7,863.52 points

Frankfurt - DAX: DOWN 0.6 percent at 18,440.32

London - FTSE 100: DOWN 0.3 percent at 8,221.12

EURO STOXX 50: DOWN 1.1 percent at 4,995.13

Euro/dollar: DOWN at $1.0737 from $1.0805 on Friday

Euro/pound: DOWN at 84.57 pence from 84.91 pence

Dollar/yen: UP at 156.84 yen from 156.71 yen

Pound/dollar: DOWN at $1.2694 from $1.2722

Tokyo - Nikkei 225: UP 0.9 percent at 39,038.16 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

Shanghai - Composite: Closed for a holiday

New York - Dow Jones: DOWN 0.2 percent at 38,798.99 (close)

West Texas Intermediate: UNCHANGED at $75.53 per barrel

Brent North Sea Crude: UP 0.2 percent at $79.76 per barrel

(R.White--TAG)