Europe open: French, Italian stocks fall after weekend protests turn violent

(Sharecast News) - European shares were mixed at the open on Monday as investors assessed the impact of political unrest in France over plans to cut public spending, while protests also turned violent in Italy.

The pan-regional Stoxx 600 index was down 0.56% at 0732 GMT, with France's CAC 40 declining by 1.17% and Italy's MIB 1.08%.

At least 2,400 people have been arrested after a wave of protests across the country over the cost of living spilled over into violence and looting, leaving shops smashed and public buildings burned. Protests also broke out in Spain, Italy and Portugal.

The turmoil hit 10-year French government bonds, with the yield rising five basis points to 4.84% and the spread with safer German bonds out to around 143 basis points reflecting investor concerns over France's fiscal and political outlook.

Elsewhere, oil prices slid as US President Donald Trump seemingly decided to side with Russia in its war against Ukraine and waive bi-partisan legislation that would impose further sanctions on Moscow.

Brent crude fell 2.38% to $107 a barrel while West Texas Intermediate was down 1.83% to $99.55.

In equity news French stocks were under pressure, with supermarket chain Carrefour and shopping centre developer Klepierre both down after the weekend's looting and vandalism.

Carrefour also revealed it had struck a deal with Colruyt Group to acquire local food retail company Codifrance for �152m.

Reporting by Frank Prenesti for Sharecast.com