European Stocks Mixed as Political Risks Weigh on Markets

European equities were broadly stable on Monday, with the STOXX 600 edging 0.2% higher while the STOXX 50 fluctuated around unchanged levels. Spanish shares gained around 0.4% after Prime Minister Pedro Sánchez announced a snap election for November 29, following a parliamentary setback for his government. French equities, however, underperformed, with the CAC 40 falling about 0.8% as concerns over the country’s fiscal position and political uncertainty weighed on sentiment ahead of the 2027 presidential election. The euro also weakened to a 17-month low. Schneider Electric was among the biggest drags, dropping more than 7% after announcing a $22.6 billion acquisition of US software company PTC, its largest deal to date. Banco Santander provided some support, gaining more than 2%. Mining stocks advanced as precious-metal prices benefited from softer US employment data, which strengthened expectations that the Federal Reserve could leave interest rates unchanged this month.