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France’s borrowing costs surge as Macron calls snap election



The euro has slumped after Emmanuel Macron called a snap election for France’s parliament following defeat in the European Parliament vote to the hard- right.

The single currency has slumped against both the pound and the dollar after the decision created what economists called “an unexpected element of uncertainty”.

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What happened overnight 

Asian markets were mixed after a US jobs report released on Friday came in stronger than expected.

The euro fell after French President Emmanuel Macron dissolved the National Assembly following a setback in Sunday’s parliamentary election.

Trading in Asia was muted with markets in China, Hong Kong, Australia and Taiwan closed for holidays.

In Tokyo, the Nikkei 225 index was up 0.5pc at 38,872.19 after government data on Monday showed Japan’s economy contracted at an annualized 1.8pc pace in January-March compared to the previous quarter, an upward revision from the previously announced 2% drop.

South Korea’s Kospi slipped 0.7pc to 2,705.06.

Meanwhile, in Europe, far-right parties made major gains in parliamentary elections Sunday, leading French President Emmanuel Macron to announce that he was dissolving the National Assembly and calling a snap legislative election. 

On Friday, the S&P 500 fell 0.1pc to 5,346.99, the Nasdaq composite slipped 0.2pc to 38,798.99, and the Dow Jones Industrial Average slipped 0.2pc to 38,798.99.

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