European stocks fell at the open on Monday as markets reacted to an expected hung parliament in France following a surprise win for a left-wing coalition of parties.
France’s CAC 40 slipped 0.4%, and the euro was down 0.13% against the dollar. Deutsche Bank strategists noted, “Trying to build a government that has any kind of stability looks a very high bar this morning. Political paralysis for the next 12 months seems the most likely outcome.”
The U.K.’s FTSE 100 index slipped around 0.3%, while Germany’s DAX and the FTSE MIB were both trading around the flatline. The pan-European STOXX 600 fell 0.1%.
