Banks lead sectoral declines
HM rises on UBS upgrade
STOXX 600 down 0.3

June 14 Reuters European shares lost ground on Friday, with the benchmark index poised for a weekly loss as investors remained on the sidelines amid the political uncertainty in France.

The panEuropean STOXX 600 was down 0.3 as of 0832 GMT and has lost 1.7 so far this week.

France39;s benchmark CAC 40 index shed nearly 1.3, underperforming the region39;s bourses, and the risk premium on domestic bonds hit a sevenyear high as investors remained unnerved by the political situation.

France39;s leftwing parties will reveal the political manifesto for their renewed alliance on Friday in a bid to challenge the farright39;s National Rally RN, leading the polls for upcoming snap parliamentary elections.

If President Emmanuel Macron39;s party loses to the RN, he will likely have to serve the next three years of his presidency with a legislature dominated by them. Markets worry about this outcome, Frederique Carrier, head of investment strategy for RBC Wealth Management in the British Isles and Asia, said in a note.

A shift to a more expansive fiscal policy in France could have wideranging repercussions on the region.

Food and beverages and healthcare were amongst the few bright spots, up around 0.4 each, while most other sectors were subdued.

European lenders slid 1.1 and led declines, with French banks BNP Paribas, Societe Generale and Credit Agricole dropping more than 3 each.

Automobilerelated…