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The pan-European STOXX 600 index slipped 0.7% by 0710 GMT. France’s CAC 40 dropped 0.4%, Germany’s DAX fell 0.9% and UK’s FTSE 100 was down 0.5%.
Partial results put Macron in first place ahead of Le Pen after the first-round voting, although Ifop pollsters predicted a very tight runoff on April 24, with 51% for Macron and 49% for Le Pen.
French assets have underperformed recently as investors priced in a possibility of a Le Pen victory. While she no longer advocates ditching the euro, markets are uneasy about her agenda of protectionism, tax cuts and nationalisation.
The French Mid & Smallcap index dropped 0.2%, while banks including Societe Generale (OTC:SCGLY), Credit Agricole (OTC:CRARY) and BNP Paribas (OTC:BNPQY) rose between 0.4% and 5.2%. Overall euro zone banks gained 0.7%.
Societe Generale gained as it agreed to sell its stake in Rosbank and the Russian lender’s insurance subsidiaries to Interros Capital, a firm linked to billionaire Vladimir Potanin.
