Berliner Boersenzeitung - European stocks retreat as France violence spreads

Most sectors were dragged lower, while there was renewed selling of bonds and the euro as trading approached the half-way stage in Europe.

Asia's main indices closed mixed following Wall Street's selloff on Friday that was fuelled by growing concerns over the AI investment boom.

"European shares were broadly weaker but France and Italy are getting the worst of it," noted Saxo UK investor strategist, Neil Wilson.

"Earnings this week will be crucial to broader risk sentiment. In particular, (Facebook parent) Meta is in focus as the first of the five major hyperscalers to report."

France's President Emmanuel Macron on Sunday slammed the "unbridled" violence that erupted in cost-of-living demonstrations across the country, as police battled protesters and looters in new clashes in Paris.

Nearly 2,400 people were arrested Saturday in unrest that represented some of the worst urban violence in France in years, with almost 1,000 police injured, the interior ministry said.

It comes as the country's lawmakers wrangle over a 2027 budget plan that calls for billions of euros in spending cuts but which keeps France's debt levels extremely high.

In Italy, Prime Minister Giorgia Meloni was holding a security meeting Monday to address the Milan violence, which resembled some scenes of chaos and looting in Paris.

Over in Asia, focus centred on its heavyweight technology sector, with chipmakers and other firms linked to artificial intelligence once more facing pressure.

Concerns about rising investment costs and whether the vast sums pumped into the sector would see a return dominated sentiment.

Oil prices slipped Monday on signs that supplies continued to leave the Middle East despite Iran's chokehold on the Strait of Hormuz and ongoing attacks by Yemen's Houthis on key Saudi Arabian crude sites.

US President Donald Trump's decision to waive a new package of energy sanctions on Russia also weighed on oil futures, according to analysts.

Jakarta's stock market sank over five percent Monday, extending Friday's plunge of more than 11 percent.

It came after index compiler MSCI said it was "no longer appropriate" to maintain the country's emerging-market status, fuelling fears of an exodus of foreign investment.

There was little market reaction to official data Monday showing China's economy grew 4.5 percent in the third quarter, slightly better than forecast in an AFP survey.

- Key figures at around 1030 GMT -

Paris - CAC 40: DOWN 1.5 percent at 7,936.61 points

Milan - FTSE MIB: DOWN 1.6 percent at 49,037.70

London - FTSE 100: DOWN 1.0 percent at 10,775.37 points

Frankfurt - DAX: DOWN 1.3 percent at 25,282.95

Tokyo - Nikkei 225: DOWN 0.6 percent at 64,916.70 (close)

Shanghai - Composite: UP 0.4 percent at 3,730.92 (close)

Hong Kong - Hang Seng Index: Closed for a holiday

New York - Dow: DOWN 0.3 percent at 52,002.41 (close)

Brent North Sea crude: DOWN 1.1 percent at $108.64 per barrel

West Texas Intermediate: DOWN 0.6 percent at $98.43 per barrel

Euro/dollar: DOWN at $1.1208 from $1.1236 on Friday

Pound/dollar: DOWN at $1.3325 from $1.3329

Dollar/yen: UP at 158.21 yen from 157.99 yen

Euro/pound: DOWN at 84.13 pence from 84.31 pence

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(P.Werner--BBZ)