European shares fall to the lowest level in a month

European shares fell more than 1% on Monday as concerns about an economic slowdown in China and rapid increases in US interest rates outweighed relief from French President Emmanuel Macron’s election victory.

By 0705 GMT, the European Stoxx 600 index fell by 1.9 percent to its lowest level since mid-March. France’s CAC 40 fell 2.0 percent and Germany’s DAX fell 1.9 percent.

The euro got a brief boost after Sunday’s election results showed the centrist and pro-EU Macron winning, reassuring markets about France’s commitment to Europe even if his economic program now rests on parliamentary elections in June.

French stocks have outperformed the broader Stoxx 600 index over the past two weeks on hopes of Macron’s re-election after his relatively modest lead in opinion polls over rival Marine Le Pen, who favors nationalizing key industries and tax cuts, kept investors on edge.

Asian stocks had their worst session in a month and a half on Monday as fears grew that Beijing was about to join Shanghai in the shutdowns.