Euro falls to lowest in a month
Eurosceptic nationalists gain in EU election
French President Macron risks losing domestic control
French bonds, stocks hit

LONDONSINGAPORE, June 10 Reuters The euro tumbled, while French bonds and stocks were hit hard on Monday, following French President Emmanuel Macron39;s decision to call a snap parliamentary election after being trounced in a European Union vote by the far right.

The euro fell 0.5 to a onemonth low of 1.0764 and slumped to a 21month trough against sterling of 84.53 pence .

French bluechip stocks dropped 2, led by steep losses in the likes of lenders such as BNP Paribas and Societe Generale, making the CAC 40 the worstperforming index in Europe. Europe39;s benchmark STOXX 600 fell 0.7.

French government bond prices also fell , pushing 10year yields close to their highest this year, at around 3.19.

Centre, liberal and Socialist parties were set to retain a majority after the European Parliament elections, but eurosceptic nationalists made the biggest gains, raising questions about the ability of major powers to drive policy in the bloc.

Making a risky gamble to reestablish authority, Macron called a parliamentary election with a first round on June 30.

If the farright National Rally party wins a majority, Macron would be left without a say in domestic affairs.

That is probably somewhat bad news for markets, said Berenberg chief economist Holger Schmieding.

It introduces an unexpected element of uncertainty….