European equities steadied Friday, but remained on course for their worst week in five months as French political risks weigh on sentiment.
The Stoxx 600 Index was about 0.1% higher by 8:11 a.m. in London, with health care and technology stocks faring best and industrial and consumer sectors the biggest laggards. France’s CAC 40 extended its losses, heading for its steepest weekly slump since September 2022, after President Emmanuel Macron called a snap legislative election.
The main European regional index is on track for its steepest weekly drop since January and heading for the biggest weekly divergence from the S&P 500 since the 2023 banking turmoil.
“Political uncertainty is going to keep setting the trend in European markets, at least in the short term,” said Thomas Nugent, equities portfolio manager at Mapfre AM. The Spanish asset manager has increased its equity exposure on the expectation corporates will have a better second half of the year than the first.
Concerns that Marine Le Pen’s far-right National Rally party may usher in looser fiscal policies if it wins legislative elections have fueled a decline in French bonds, which tumbled, driving yields over safer German peers to the highest level in seven years.
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With assistance from Farah Elbahrawy.
This article was generated from an automated news agency feed without modifications to text.
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Published: 15 Jun 2024, 12:11 AM IST