French markets and the euro were roiled Monday by President Emmanuel Macron’s surprise decision to call a snap election after his party lost to the far right in a vote for European lawmakers.
Big gains for the far right in the French election could force Macron to govern with a hostile parliament, making it harder for his centrist administration to pursue its policy agenda and raising doubts about its ability to put government finances on a more sustainable footing.
France’s CAC 40 index, which represents 40 of the biggest companies listed in Paris, fell 1.8% by 11.02 a.m. ET, with banks among the biggest losers. Europe’s benchmark Stoxx 600 index was trading 0.5% down on the day by the same time.
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