European markets drop as French banks slide over snap election
The FTSE 100 finished 16.89 points, or 0.20%, lower to end the day at 8,228.48.
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Your support makes all the difference.European financial markets fell back on Monday as political uncertainty weighed on investor sentiment.
French stocks were particularly weak due to President Emmanuel Macron’s shock decision to call a snap election.
Banks were particularly heavy losers amid a lack of clarity over the future government in the country, denting firms in the sector across the UK and Germany as well.
The Cac 40 in France ended 1.35% lower and the German Dax index was down 0.37% at the close.
The FTSE 100 finished 16.89 points, or 0.20%, lower to end the day at 8,228.48.
Across the Atlantic, the Dow Jones inched lower as traders were cautious ahead of key inflation data and a Federal Reserve interest rate decision later this week.
Chris Beauchamp, chief market analyst at IG, said: “Stocks find themselves hit by several worries today.
“The stellar payrolls report on Friday has dealt a further blow to hopes of a US rate cut, and snap French elections have given traders something else to worry about.
“Plus, with US CPI (consumer price inflation) and the Fed on the calendar for Wednesday there is little incentive for traders to plunge back in.”
Meanwhile, sterling made big strides against the weak Euro, which was another casualty of French political uncertainty on Monday.
The pound was up 0.04% at 1.273 US dollars and was up 0.53% at 1.183 euro, its highest level for almost two years, at market close in London.
In company news, equipment hire firm Ashtead was higher at the end of trading amid reports it could become the latest UK blue-chip company to switch its listing to New York.
Shareholders welcomed the speculation, which was first reported by the Sunday Telegraph, despite the company talking down the prospect last year.
Shares finished up 1.51% at 5,642p.
Mission Group slumped in value on Monday after rival marketing firm Brave Bison dropped its takeover interest in the company.
Brave Bison made an improved takeover approach for Mission last week, valuing the company at over £32 million, but confirmed on Monday that it will not be putting in a firm offer to buy the business.
As a result, Mission shares dropped by 11.1% to 24p at the close.
Elsewhere, investment management giant M&G was higher after the stock received an upgrade from JP Morgan, with the bank highlighting a positive outlook and hopes for an improved debt position.
M&G shares were up 2.37% at 203p for the session, meaning its shares are now up by around a 10th for the past six months.
The price of oil made strong gains on Monday to regain all the ground lost last week following the Opec+ meeting which indicated some cuts to supply.
A barrel of Brent crude oil was up by 1.97% to 79.68 US dollars as markets were closing in London.
The biggest risers on the FTSE 100 were M&G, up 4.7p to 203p, Rolls-Royce, up 8.1p to 465p, BP, up 8.15p to 470.85p, Ashtead, up 84p to 5,642p, and Hargreaves Lansdown, up 15.5p to 1,074p.
The biggest fallers on the FTSE 100 were Rentokil, down 12.1p to 409.3p, Diploma, down 120p to 4090p, Admiral Group, down 73p to 2657p, ConvaTec, down 6.4p to 245.4p, and DS Smith, down 9.4p to 361p.