The Paris Stock Exchange led losses among European markets at the open on Monday, as French President Emmanuel Macron called for early elections after his coalition lost to the far right in European Union elections.
Yield spreads between benchmark euro-denominated German bonds and euro zone government bonds widened after far-right eurosceptic parties made their biggest gains in European Parliament elections on Sunday, according to polls, prompting Macron to demand early legislative elections in a risky move aimed at re-establishing his power.
Shares in BNP Paribas, France's biggest bank, fell nearly 8 percent at the open and were trading down 5 percent by 0712 GMT, while other French banks such as Credit Agricole and Societe Generale suffered heavy losses.
At the start of trading, the French CAC 40 index fell by 2.4 percent, touching its lowest levels in more than three months.
While the German DAX index fell by 0.7 percent, the Stoxx 600 index fell by just under 0.7 percent, and the Spanish IBEX index fell by about one percent.
Stock markets came under pressure on Friday after a stronger-than-expected US jobs report raised concerns that the Federal Reserve's move to cut interest rates was still a long way off.
