IBEX 35 
Although the feared triumph of the French ultra-right did not materialize, investors were worried about the difficult situation of governability in the country, after elections that gave the victory to the left-wing front, but with a fragmented National Assembly that predicts difficult negotiations to form a government.
"The situation now opens, therefore, a situation of uncertainty, with three political blocs facing each other and none of them with a majority (289 deputies) to govern. The options open from today are unusual, without France having had a similar situation before," said the securities firm Renta 4.
In addition, the financial markets are still awaiting macroeconomic news from the United States, after the latest indicators pointed to a deterioration in activity that could pave the way for two rate cuts by the Federal Reserve this year.
In this regard, price indices will be released this week in the United States, consumption on Thursday and production on Friday.
Other areas of interest for the markets will be the situation in Gaza, with the possibility of an agreement to stop the war that started in October, and the imminent second quarter corporate earnings season.
"We believe that market performance will continue to be shaped by the tone of macroeconomic data and, in the short term, political developments. In addition, the new earnings season will continue to test the resilience of companies and the growth of the most AI-linked sectors, which are the current main catalyst for North American markets," said Renta 4 analysts.
Against this backdrop, at 0715 GMT on Monday, the selective Spanish stock market IBEX 35 fell 40.70 points, or 0.37%, to 10,982.80 points, while the FTSE Eurofirst 300 index of large European stocks fell 0.10%.
In the banking sector, Santander lost 0.35%, BBVA fell 0.46%, Caixabank dropped 0.24%, Sabadell fell 0.53%, Bankinter dropped 0.73% and Unicaja Banco lost 0.31%.
Among the large non-financial stocks, Telefónica fell 0.55%, Inditex advanced 0.15%, Iberdrola dropped 0.46%, Cellnex fell 0.19%, and the oil company Repsol lost 1.11%.
Grifols also stood out, whose share price was suspended before the opening after learning of an agreement between the founding family and Brookfield to evaluate a delisting takeover bid for the pharmaceutical company.
(Information by Tomás Cobos; edited by Benjamín Mejías Valencia)
