Shares in French banks have tumbled after President Macron called a snap election following a strong performance from the far-right parties in the European Union Parliamentary votes.
BNP Paribas tumbled by more than 4.5%, while Societe Generale fell by around 7.5% in reaction to Macron's announcement.
In the UK, Lloyds, Barclays and NatWest all slipped between 1% and 2%.
French government bond prices also fell, leading to 10-year yields soaring close to their highest for the year at close to 3.19%.
The euro is down by around 0.15% compared to the pound at 84p, while the currency has fallen 0.3% against the dollar to US$1.07 - its lowest level in a month.
David Morrison, the analyst at Trade Nation, said: "Not only does the single currency have to deal with last week’s rate cut from the ECB, which makes it less attractive to hold, but now also with the political uncertainty triggered by President Macron’s arguably rash and unnecessary gamble to face down Marine Le Pen’s populist ‘National Rally’ party.