Major European Markets Close Weak

European equities finished slightly lower in a cautious session as investors weighed the fallout from France’s parliamentary election, where a left-wing alliance won the most seats but no bloc secured a majority. The political uncertainty raised concerns about governance in Europe’s second-largest economy and broader EU stability. The pan-European Stoxx 600 slipped 0.03%, with the FTSE 100 down 0.13%, France’s CAC 40 down 0.63%, and Germany’s DAX down 0.02%, while Switzerland’s SMI rose 0.38%. Sector and stock moves were mixed, with some gains in insurers and defense-related names, while Delivery Hero fell sharply on a potential antitrust fine of more than 400 million euros. Macro data also added to the cautious tone: German exports fell 3.6% in May and euro-area investor sentiment dropped to -7.3 in July from +0.3 in June. Markets were also waiting for Fed Chair Jerome Powell’s testimony for policy clues, adding to the risk-off backdrop.