European shares were flat on Monday as investors weighed the impact of tighter monetary policies on the global economy, while French stocks fell after Sunday’s vote saw President Emmanuel Macron lose control of the National Assembly.
The pan-European STOXX 600 index was up 0.06% by 0736 GMT, while the US holiday could spark choppy trading. Last week, the benchmark index lost 4.6% in a global sell-off fueled by recession fears.
France’s CAC 40 fell 0.1% after Macron’s centrist coalition fell far short of the absolute majority needed to control parliament, a major setback that could plunge the country into political paralysis.
The country’s top banks, including Société Générale, BNP Paribas and Crédit Agricole, fell about 1% each.
French automaker Renault rose 3.6% after Jefferies raised the stock to “buy.”
Swedish garden equipment maker Husqvarna fell 1.8% after saying production in the second quarter had been limited by continued component supply shortages.