MILAN May 8 European shares briefly hit fresh
highs in early deals on Monday before dipping into the red,
pulled lower by banks and resources-related stocks, as the
widely anticipated result of the French presidential vote
spurred some profit-taking.
The pan-European STOXX 600 index was down 0.2
percent, while France's CAC fell 0.4 percent after
hitting its highest levels in more than 9 years and the German
DAX was flat, holding near record highs.
Centrist Emmanuel Macron was elected French president with a
business-friendly vision of European integration, defeating
Marine Le Pen, a far-right nationalist who threatened to take
France out of the European Union.
"Because it is broadly in line with recent polls, this
result has already been largely anticipated by market
participants and therefore we would expect the extent of any new
'relief rally' to be more modest than what we experienced after
the first round," said Julien Lafargue, European equities
strategist at JP Morgan Private Bank.
Banks, which are more sensitive than other sectors to
political factors, also turned negative. The euro zone bank
index was down fell 0.7 percent after earlier hitting
its highest since November 2015.
French banks BNP Paribas and Societe General
fell more than 1 percent.
Some market participants have speculated that a Macron win
could be the last piece of the puzzle for the European Central
Bank's Mario Draghi to begin rolling back from its ultra-loose
(Reporting by Danilo Masoni, Editing by Vikram Subhedar)