(Bloomberg) — Global stocks and bonds stayed under pressure, ceding most of the early gains sparked by French far-right leader Marine le Pen’s pledge to respect political institutions if she wins the upcoming snap parliamentary election.

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Contracts on the S&P 500 slipped alongside the pan-European Stoxx 600 index. France’s Cac 40 benchmark erased all of its opening 1% advance to trade lower. Euro-area bond yields rose, with France’s yield premium over Germany staying near the widest in years. The euro was modestly firmer against the dollar, after shedding almost 1% last week.

Global markets are struggling to recover from a selloff sparked last week by French President Emmanuel Macron’s call for a snap election, that could result in gains for far-right groups, including Le Pen’s National Rally. European assets were lifted initially as Le Pen appeared to soothe investors with comments that she will won’t try to push out Macron if she wins the election, but the gains fizzled quickly.

“It’s fair to say that foreign investors are nervous about the the heightened political risk that the situation in France brings,” said Frédérique Carrier, head of investment strategy at RBC Wealth Management. “The market still has a lot of difficulty pricing in these sorts of events.”

Still, she noted populist politicians do have a history of moving closer to the center once they reach power and Le Pen’s comments had fueled hopes for that outcome in France.

“It’s possible that these signs of them being a little bit less radical and wanting to play nice might encourage the market a little bit,” Carrier said.

ECB Officials See No Cause for Alarm Over French Market Turmoil

But with the first election round on June 30, investors are likely to stay wary of Europe. Citigroup analysts warned that a potential far-right majority in France is among the risk factors for European equities and said they favor the US market.

Thushka Maharaj, a multi-asset strategist at JPMorgan Asset Management, said she had started to turn more positive on European stocks before the election announcement but “the political uncertainty makes that harder to position for immediately.”

Markets’ monetary policy angst could also return this week. The Bank of England’s Thursday meeting could signal that a July 4 election and lingering price pressures will force rate-setters to wait until August at least before easing policy. Peers in Australia and Norway, also meeting this week, also seem to be in no hurry to cut rates.

A swath of Federal Reserve officials including Dallas Fed President Lorie Logan, Chicago Fed President Austan Goolsbee and Fed Governor Adriana Kugler are due to speak.

For Bond Traders, Data Matter More Than What the Fed Is Saying

Earlier in the day, Asian shares fell, tracking Wall Street’s weak Friday close. China’s PBOC kept its one-year MLF interest rate unchanged. Chinese property developers’ shares fell after home prices declined at a faster pace in May, despite authorities’ recent efforts to support the real estate market.

Key events this week:

  • US Empire manufacturing, Monday

  • ECB Chief Economist Phillip Lane speaks, Monday

  • Philadelphia Fed President Patrick Harker speaks, Monday

  • Australia rate decision, Tuesday

  • Chile rate decision, Tuesday

  • Eurozone CPI, Tuesday

  • Singapore trade, Tuesday

  • US retail sales, business inventories, industrial production, cross-border investment, Tuesday

  • Richmond Fed President Thomas Barkin, Dallas Fed President Lorie Logan, Fed Governor Adriana Kugler, St. Louis Fed President Alberto Musalem, Chicago Fed President Austan Goolsbee, Tuesday

  • Japan trade, Wednesday

  • Bank of Japan issues minutes of April policy meeting, Wednesday

  • UK CPI, Wednesday

  • Bank of Canada issues Summary of Deliberations, Wednesday

  • Brazil rate decision, Wednesday

  • New Zealand GDP, Thursday

  • China loan prime rates, Thursday

  • Indonesia rate decision, Thursday

  • Eurozone consumer confidence, Thursday

  • Norway rate decision, Thursday

  • Switzerland rate decision, Thursday

  • Eurozone finance ministers meet, Thursday

  • UK BOE rate decision, Thursday

  • US housing starts, initial jobless claims, Thursday

  • Japan CPI, Friday

  • Hong Kong CPI, Friday

  • India S&P Global Manufacturing PMI, Friday

  • Eurozone S&P Global Manufacturing PMI, S&P Global Services PMI, Friday

  • UK S&P Global / CIPS Manufacturing PMI, Friday

  • US existing home sales, Conf. Board leading index, Friday

  • Canada retail sales, Friday

  • Richmond Fed President Thomas Barkin speaks, Friday

Some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 fell 0.2% as of 11:37 a.m. London time

  • S&P 500 futures fell 0.1%

  • Nasdaq 100 futures rose 0.1%

  • Futures on the Dow Jones Industrial Average fell 0.2%

  • The MSCI Asia Pacific Index fell 0.8%

  • The MSCI Emerging Markets Index fell 0.2%

Currencies

  • The Bloomberg Dollar Spot Index rose 0.1%

  • The euro was little changed at $1.0704

  • The Japanese yen fell 0.2% to 157.64 per dollar

  • The offshore yuan was little changed at 7.2700 per dollar

  • The British pound fell 0.2% to $1.2662

Cryptocurrencies

  • Bitcoin fell 1.1% to $65,710.01

  • Ether fell 2.6% to $3,505.46

Bonds

  • The yield on 10-year Treasuries advanced two basis points to 4.24%

  • Germany’s 10-year yield advanced three basis points to 2.39%

  • Britain’s 10-year yield advanced two basis points to 4.07%

Commodities

  • Brent crude fell 0.1% to $82.51 a barrel

  • Spot gold fell 0.5% to $2,321.40 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Michael G. Wilson, Masaki Kondo, Matthew Burgess and Winnie Hsu.

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