(Bloomberg) — French equities posted their biggest two-day decline in a year as banking stocks fell along with the country’s bonds as the fallout from President Emmanuel Macron’s decision to call a snap election deepened.
France’s benchmark CAC 40 Index ended the session 1.3% lower, bringing the total decline over the past two days to 2.7%. Lenders Societe Generale SA, Credit Agricole SA and BNP Paribas were among the biggest losers, seeing the Euro Stoxx Banks Index mark its worst day since last August. The pan-European Stoxx 600 fell 0.9%.
Stocks and bonds have been rattled this week as Macron called an election following his party’s defeat in the European Parliament election over the weekend. The French election, which will take place over two rounds and conclude on July 7, confronts investors with the risk of Marine Le Pen’s far-right National Rally taking control of the legislature.
“Markets had absolutely not…
