ROME: European stocks have fallen while Turkish shares plunged on the political and economic uncertainty triggered by the country’s elections, offsetting support for the beverage and banking sectors.
Markets were also tracking the latest developments surrounding Greece’s stand-off with the European Union in debt talks, as well as comments out of the Group of Seven summit in Germany.
The CAC 40 in Paris lost 1.3 per cent to 4,857.66 points, and Frankfurt’s DAX 30 dropped 1.2 per cent to 11,064.92 points.
London’s benchmark FTSE 100 slid 0.2 per cent to 6,790.04 points.
The euro rose to $US1.1214 from $US1.1115 late on Friday in New York. Profit taking set in after the US dollar had rallied ahead of the weekend following robust US jobs data that increased the prospect of an interest rate rise from the Federal Reserve later this year.
“European markets have continued where they left off at the end of last week, as rising bond yields and the continued impasse over a new Greece deal keep investors cautious,” Michael Hewson, chief market analyst at CMC Markets UK, said.
Elsewhere, the Turkish lira plunged to a record low against the US dollar on Monday, breaking through the 2.8 lira level against the dollar for the first time.
Turkey’s central bank acted swiftly to give some support to the pressured Turkish lira, saying it was pruning its short-term foreign exchange deposit rates effective Tuesday.
