Akzo Nobel shares slide after company rejects another PPG bid
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Stocks across Europe slipped Monday, with shares in Paris pulling back from a nine-year high after market favorite Emmanuel Macron won the French presidential election on Sunday.
The Stoxx Europe 600 index shed 0.1% to 394.29, led by losses for the basic materials, industrials and technology groups.
The benchmark on Friday closed at its highest since August 2015 and last week gained 1.9%, with investors snapping up stocks on expectations that independent centrist Macron would defeat far-right euroskeptic Marine Le Pen in the French runoff vote.
Read:Investors are breathing a sigh of relief over France, for now (http://www.marketwatch.com/story/investors-are-breathing-a-sigh-of-relief-over-france-for-now-2017-05-07)
And see:Emmanuel Macron -- 5 things to know about France's next president (http://www.marketwatch.com/story/emmanuel-macron-5-things-to-know-about-the-man-poised-to-be-frances-president-2017-04-24)
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On Monday, France's CAC 40 index gave up 0.5% at 5,402.90, after closing on Friday at its highest since January 2008. At that point, the French benchmark had surged 7.4% since April 23, when Macron came out top in the first round of the presidential race.
"[Macron's] victory will be seen as strengthening the euro project with Macron looking to further integrate the eurozone through a common budget," said James Woods, global investment analyst at Rivkin Securities, in a note.
Check out:Macron the Redeemer's toughest task -- keep the EU from collapsing (http://www.marketwatch.com/story/macron-the-redeemers-toughest-task-keep-the-european-union-from-collapsing-2017-05-07)
In Paris trade, lender Societe Generale SA (GLE.FR) was down 1.9% and facing its first loss in five sessions, while banking heavyweight BNP Paribas SA (BNP.FR) shed 1.2%. Among the few gainers, media conglomerate Vivendi SA (VIV.FR) picked up 0.5%.
"The focus now shifts to the first round of French legislative elections on June 11th, where forming a majority government will be key if Macron is to deliver on his campaign promises of a more efficient government, reduced government spending, lowering the tax rates and reforming the labor market to make it more flexible," said Woods.
In the fixed-income market, the yield on France's 10-year bond was down less than 1 basis point at 0.76%.
Elsewhere in Europe: Germany's DAX 30 index slipped 5 points at 12,712.28 after closing Friday's session at a record high. The U.K.'s FTSE 100 index was off 0.1% at 7,293.49.
In Madrid, the IBEX 35 fell 0.3% to 11,108.00, and Italy's FTSE MIB moved down 0.5% at 21,387.09.
Stock movers: Shares of Akzo Nobel (AKZOY) fell 3.2% after the Dutch paints-and-chemicals maker rejected a third takeover bid from PPG Industries Inc (http://www.marketwatch.com/story/akzo-nobel-rejects-ppgs-third-takeover-bid-2017-05-08). (PPG) . The third bid was for EUR24.6 billion ($27.05 billion).
Economic docket: German manufacturing orders increased by 1.0% (http://www.marketwatch.com/story/german-manufacturing-orders-rise-1-on-month-2017-05-08) on the month in March, more than expected and another sign that Europe's largest economy picked up speed in the first quarter.
The euro traded at $1.0972, after hitting an intraday high of $1.1042. It bought $1.0999 late Friday in New York.
(END) Dow Jones Newswires
May 08, 2017 04:03 ET (08:03 GMT)