European Shares Retreat As Macron Calls Snap Elections After Defeat In EU Vote

(RTTNews) - European stocks drifted lower on Monday, with French stocks coming under heavy selling pressure, after President Emmanuel Macron called for snap legislative elections later in June.

Macron's decision comes after the European Union elections showed a broader shift towards right-wing and far-right parties.

Focus also shifted toward Federal Reserve policymakers updating their rates forecast on Wednesday, though no change in policy rates is expected.

The pan European STOXX 600 dropped 0.7 percent to 520.03 after losing 0.2 percent on Friday.

The German DAX shed 0.8 percent, France's CAC 40 plunged 1.9 percent and the U.K.'s FTSE 100 was down 0.4 percent.

French banks led losses, with BNP Paribas, Credit Agricole and Societe Generale falling 4-6 percent.

Airbus SE declined 1.1 percent. The planemaker announced that its Airbus Defence and Space unit has received a contract from Al Yah Satellite Communications Co. PJSC, or Yahsat, UAE's flagship satellite solutions provider, for its new geostationary telecommunications satellites, Al Yah 4 and Al Yah 5.

Pennon dropped 1 percent as the British water company appointed David Sproul as chair designate, replacing Gill Rider after the annual general meeting on July 24.

Tristel added 1.4 percent. The maker of infection prevention products said that it has appointed Matthew Sassone as Chief Executive Officer with effect from September 2.

In economic releases, U.K. permanent staff appointments fell for the twentieth consecutive month in May, but the pace of decrease was the softest since March 2023, a report compiled by S&P Global showed.

Recruitment consultants cited delayed decision making and a lack of demand amongst companies as reasons for the fall in recruitment activity, the KPMG/REC Report on Jobs revealed.

Temp billings also decreased in May, with the decline the weakest since January.