European stocks muted on French election, inflation jitters

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window

June 20 (Reuters) – European stocks were flat on Monday as investors weighed the impact of tighter monetary policies on the global economy, while French stocks lagged after Sunday’s vote saw President Emmanuel Macron lose control of the National Assembly.

The pan-European STOXX 600 index .STOXX was up 0.01% by 0714 GMT, with a U.S. holiday likely making for choppy trading. The benchmark had shed 4.6% last week in a global sell-off that was fuelled by worries about a recession.

France’s CAC 40 .FCHI slipped 0.1% after Macron’s centrist Ensemble coalition fell well short of the absolute majority needed to control parliament, a major setback that could throw the country into political paralysis. nL1N2Y6035

The country’s major banks, including Societe Generale SOGN.PA, BNP Paribas BNPP.PA and Credit Agricole CAGR.PA, slipped about 1% each.

French carmaker Renault RENA.PA jumped 3.6% after Jefferies upgraded the stock to “buy”.

Swedish gardening power equipment maker Husqvarna HUSQb.ST dropped 1.8% after it said production in the second quarter had been constrained by continued component supply shortage. nL8N2Y70MF

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))