European stocks muted on French election, inflation jitters
2022.06.20 10:32
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 17, 2022. REUTERS/Staff
(Reuters) – European stocks were flat on Monday as investors weighed the impact of tighter monetary policies on the global economy, while French stocks lagged after Sunday’s vote saw President Emmanuel Macron lose control of the National Assembly.
The pan-European STOXX 600 index was up 0.01% by 0714 GMT, with a U.S. holiday likely making for choppy trading. The benchmark had shed 4.6% last week in a global sell-off that was fuelled by worries about a recession.
France’s CAC 40 slipped 0.1% after Macron’s centrist Ensemble coalition fell well short of the absolute majority needed to control parliament, a major setback that could throw the country into political paralysis.
The country’s major banks, including Societe Generale (OTC:SCGLY), BNP Paribas (OTC:BNPQY) and Credit Agricole (OTC:CRARY), slipped about 1% each.
French carmaker Renault (EPA:RENA) jumped 3.6% after Jefferies upgraded the stock to “buy”.
Swedish gardening power equipment maker Husqvarna dropped 1.8% after it said production in the second quarter had been constrained by continued component supply shortage.
