European Stocks Decline as Energy Prices and French Political Uncertainty Weigh on Markets: DAX, CAC, FTSE100

European stock markets fell on Monday as investors assessed elevated energy prices and political uncertainty in France, with banking shares among the sectors recording declines.

France’s CAC 40 Index dropped 1.5%, while Germany’s DAX fell 1.3%. In London, the FTSE 100 declined 1.2%, reflecting losses across major European equity markets.

Political developments in France added to market uncertainty following a period of widespread unrest. French President Emmanuel Macron condemned the violence on Sunday, a day after the country experienced one of its most significant episodes of civil disorder in recent years.

“Nothing justifies it, nothing explains it, nothing excuses it. Tonight, we all feel anger and shame,” Macron said.

Banking stocks were among the companies trading lower. Germany’s Commerzbank (TG:CBK) and Deutsche Bank (TG:DBL) declined, alongside Lloyds Bank (LSE:LLOY) in the United Kingdom.

French lenders BNP Paribas (EU:BNP), Crédit Agricole (EU:ACA) and Société Générale (EU:GLE) also recorded losses as investors monitored domestic political developments and wider market conditions.

Energy prices remained another factor affecting sentiment, with higher costs creating uncertainty over the outlook for businesses and economic activity across the region.

In individual company news, UK oil and gas producer Serica Energy (LSE:SQZ) recorded a decline in its share price after announcing a delay in production at its Triton floating production vessel. The company attributed the delay to an extended maintenance programme.

Electrical and data transmission products manufacturer Volex (LSE:VLX) also traded lower despite reporting a 21% increase in organic revenue for the first half of its financial year.

Volex said it expects full-year operating profit to be towards the upper end of market forecasts. The company did not revise its outlook beyond that range in the information provided.

The declines in European equities reflected a combination of macroeconomic and political developments, alongside company-specific announcements. Investors continued to assess the implications of energy costs and developments in France for regional markets.