FTSE down 0.66%; DAX down 1.39%; CAC 40 down 1.56% (Il Sole 24 Ore Radiocor) - London, 09 Jul - European shares closed lower as markets continued to react to the results of this weekend's elections in France.

Caution prevailed in the region amid prospects of a hung parliament in France after a surprise win for the country's leftwing coalition, the New Popular Front (Nouveau Front Populaire).

The bloc won the second round of the general election held on Sunday, thwarting an expected surge of the far-right, but failed to secure an absolute majority.

Marine Le Pen's far-right National Rally (Rassemblement National) underwhelmed after scoring historic gains in the first round of the parliamentary election on June 30.

The New Popular Front has pledged big spending increases, sparking concerns over clashes with the EU as the country already struggles with high budget deficit, recently prompting the EU to recommend disciplinary steps.

The French election results come after a general election in the UK last week that saw the opposition Labour Party win a landslide victory as expected, ending 14 years in power for the Conservative Party.

Markets also assessed comments from Jerome Powell. In testimony before the US Congress, the Federal Reserve chair warned of the risk of leaving rates too high for too long. The London FTSE 100 closed down 0.66% at 8,139.81 points, the Frankfurt DAX fell 1.39% at 18,230.93 points, the Paris CAC 40 lost 1.56% at 7,508.66 points, while in Milan the FTSE MIB dropped 0.53% at 33,864.47 points, and in Madrid the IBEX 35 closed 1.09% lower at 10,902.34 points.

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(RADIOCOR) 09-07-24 18:05:49 (0562) 5 NNNN