Euro hits 17-month low on France debt concerns

The euro fell to its lowest level against the dollar in 17 months on Monday and French stocks declined as investors focused on concerns over France's debt levels after a government budget plan unveiled last week.

The Paris CAC 40 was down 1.0 percent at 7,818.24 points around 1030 GMT. Schneider Electric also weighed on the index, with its shares falling 10 percent after the French software group said it would buy US peer PTC for $22.6 billion in cash.

The euro traded at $1.1208, down from $1.1256 on Friday. Patrick Munnelly, market strategist at Tickmill Group, said the dollar remained supported despite softer US payrolls data because US yields were still high, the Federal Reserve was not close to cutting rates and political risk in Europe was weighing on the euro.

Asian stock markets closed higher, catching up with global gains after US jobs data showed the economy created 29,000 jobs in September. The figures eased concern that the Federal Reserve would raise interest rates this month. Tokyo's Nikkei 225 closed up 2.4 percent, Hong Kong's Hang Seng rose 0.3 percent and London edged 0.2 percent higher around midday, while Frankfurt slipped 0.1 percent.

Munnelly said France had already been under pressure over fiscal credibility and political stability, and that Spain added uncertainty. Spanish Prime Minister Pedro Sanchez on Monday called a snap election for November 29 after parliament rejected housing relief measures proposed by his minority government.

Oil markets were steadier after G7 countries, in coordination with the International Energy Agency, agreed Friday to release 100 million barrels of diesel and crude oil to ease global energy supply concerns caused by the US-Iran war. Brent crude was up 0.5 percent at $102.78 a barrel, while West Texas Intermediate was down 0.4 percent at $90.74.

Saudi Aramco chief executive Amin Nasser told the Energy Intelligence Forum in London that oil stockpiles were “scarily thin” and that the supply resilience cushion was limited. Maritime tracking firm Kpler said Middle East oil exports, excluding Iran, surpassed pre-war levels last week despite attacks on ships in the Strait of Hormuz.