European Shares Edge Lower Ahead Of French Snap Elections

(RTTNews) - European stocks fell in cautious trade on Tuesday, a day after French President Emmanuel Macron warned that a victory for the far left or the far right in this month's snap election could spark "civil war."

Also, in a "Letter to the French" published on Monday, Macron has vowed to remain in office until May 2027 regardless of the outcome of the parliamentary elections on June 30 and July 7.

Elsewhere, the United Kingdom is heading to the polls on July 4 and investors are bracing for the most distorted election result in British history.

On a light day on the economic front, official data showed Spain's GDP grew 0.8 percent in the first quarter from the previous three-month period, up from an initial 0.7 percent reading released in April.

The pan European STOXX 600 dropped 0.3 percent to 517.14 after climbing 0.7 percent on Monday.

The German DAX fell 1.2 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 was little changed with a negative bias.

In corporate news, Novo Nordisk added 1.3 percent. The Danish drug maker announced its plans to invest $4.1 billion or about 27 billion Danish kroner to build a new manufacturing plant in Clayton, North Carolina with a view to expanding its manufacturing capacity in the United States.

Airbus shares plummeted nearly 11 percent in Paris. The aerospace group cut its financial targets for 2024 and also announced fresh charges of around 900 million euros, citing supply chain issues and additional costs in its space systems division.

Melrose, Rolls-Royce, Safran and MTU Aero Engines fell 4-6 percent.

Germany's HORNBACH rallied 3.1 percent after reporting higher Q1 net income and confirming its full-year outlook.

Merck KGaA plunged 10 percent after the diversified group discontinued a late-stage trial for a cancer drug.

BP Plc and Shell both rose by 0.7 percent in London as crude prices held firm near recent highs.

Vertu Motors fell about 1 percent. The automotive retailer said it anticipates fiscal 2025 results to be in line with current market expectations.

Saga rallied 2.1 percent. The provider of services to the over-50s has reported further strong trading in its ocean cruise business for the first four months of the year.