ROME: European stocks were lower in quiet trade on Monday, weighed by municipal election results in Spain and as concerns over a possible Greek default persisted.
During European morning trade, France’s CAC 40 retreated 0.42%, while Spain’s IBEX 35 tumbled 1.29%. Markets in the U.K., Germany and Switzerland were among those closed for national holiday.
Markets were hit after Spanish Prime Minister Mariano Rajoy’s People’s Party suffered its worst result in a municipal election in 24 years on Sunday. Anti-austerity party Podemos claimed its biggest victory in Barcelona.
Meanwhile, negotiations between Greek, French and German government leaders late last week ended without any sign of a breakthrough that will unlock bailout funds.
Greece is due to make a €305 million payment to the International Monetary Fund on June 5, but will default if a deal is not reached by then.
Financial stocks were broadly lower, as French lenders Societe Generale (PARIS:SOGN) and BNP Paribas (PARIS:BNPP) dropped 0.50% and 1.18%, while Germany’s Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) declined 0.51% and 2.27%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) plummeted 1.64% and 2.05% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) tumbled 1.38% and 1.45%.
Elsewhere, EDF (PARIS:EDF) slipped 0.22% amid reports it has offered about €2 billion for the reactor businesses of Areva SA, the troubled French builder of atomic plants.
In the U.S., equity markets were also closed for Memorial Day.
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