European shares inched lower on Friday, following a more than 1% drop in the previous session, with the benchmark index poised for weekly losses as investors remained on the sidelines amid a political uncertainty in France.
The pan-European STOXX 600 was down 0.1%, as of 0725 GMT, and has lost 1.5% so far this week.
Technology stocks were the only bright spot, up 0.6%, while most other sectors were subdued.
Automobile-related shares led the losses after dropping nearly 1% to trade at their lowest levels in more than four months.
The French benchmark CAC 40 index shed nearly 1%, underperforming the region’s bourses, as investors continued to be spooked by the political situation, with the risk premium on French bonds hitting a four-year high.
France’s leftwing parties will reveal the political manifesto for their renewed alliance on Friday, in a bid to challenge the far-right’s National Rally, leading the polls for upcoming snap parliamentary elections.
Automakers lead European shares lower
On the data front, French consumer prices rose 2.6% in May, slightly revising down its preliminary reading of a 2.7% increase published in late May.
Among single stocks, Crest Nicholson jumped 9.7% after the British homebuilder said rival Bellway’s revised and unsolicited 650 million pound ($828 million) all-share takeover offer “significantly undervalued” the group.
American Dollar Exchange Rate