Euro, French stocks slide on France debt concerns / Photo: Richard A. Brooks - AFP
Euro, French stocks slide on France debt concerns
The euro slid to the lowest level against the dollar in 17 months and the Paris stock market shed one percent Monday on growing concerns about France's high debt levels after an underwhelming government budget plan unveiled last week.
The CAC 40 was also pushed lower by a 10 percent drop in the share price of Schneider Electric after the French software group said it would buy US peer PTC for $22.6 billion in cash.
Asian stock markets closed higher, with regional stocks catching up with global gains Friday after a big miss on US jobs creation gave the Federal Reserve breathing room to hold off an interest rate increase this month.
Steadier oil prices provided additional support.
"The dollar remains supported despite the softer US payrolls print," said Patrick Munnelly, market strategist at Tickmill Group.
"That may appear counterintuitive, but... US yields are still high, the Fed is not close to cutting, and Europe's political risk is weighing on the euro."
"France had already been under pressure due to questions over fiscal credibility and political stability," Munnelly added. "Spain now adds another layer of uncertainty."
Spanish Prime Minister Pedro Sanchez on Monday called a snap election for November 29, after parliament rejected housing relief measures proposed by his minority government.
Spain's stock market edged up about 0.5 percent around midday.
The oil market began the week calmer after G7 countries, in coordination with the International Energy Agency, agreed Friday to immediately release 100 million barrels of diesel and crude oil to ease global energy supply concerns caused by the US-Iran war.
Saudi Aramco chief executive Amin Nasser on Monday described oil stockpiles as "scarily thin".
"The system is already straining," Nasser told the Energy Intelligence Forum in London.
"And with precious little else the world can turn to, the supply resilience cushion is scarily thin," he added in a speech to the two-day event featuring executives from across the energy industry.
Ahead of Friday's move by the Group of Seven, which includes the United States, President Donald Trump had pressured the European Union to tap its strategic diesel reserves or face an American ban on diesel exports.
Exports of Middle East oil, excluding Iran, surpassed their pre-war levels last week, despite attacks on ships in the Strait of Hormuz, according to data from the maritime tracking firm Kpler.
- Key figures at around 1030 GMT -
London - FTSE 100: UP 0.2 percent at 10,486.73 points
Paris - CAC 40: DOWN 1.0 percent at 7,818.24
Frankfurt - DAX: DOWN 0.1 percent at 25,195.45
Tokyo - Nikkei 225: UP 2.4 percent at 69,946.86 (close)
Hong Kong - Hang Seng Index: UP 0.3 percent at 24,040.34 (close)
Shanghai - Composite: Closed for a holiday
New York - Dow: UP 0.5 percent at 51,176.96 (close)
Euro/dollar: DOWN at $1.1208 from $1.1256 on Friday
Dollar/yen: UP at 157.97 yen from 157.87 yen
Pound/dollar: DOWN at $1.3225 from $1.3244
Euro/pound: DOWN at 84.73 pence from 84.99 pence
Brent North Sea Crude: UP 0.5 percent at $102.78 per barrel
West Texas Intermediate: DOWN 0.4 percent at $90.74 per barrel
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