* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, June 12 Technology stocks fell across
Europe and Asia on Monday after the worst day for Apple shares
in more than a year, while the euro and its bonds rallied after
a bumper weekend for pro-EU and pro-business politics in France
It was a groggy start to the week for shares as the hangover
of Apple's near 4-percent dunking on Friday hit Asian rivals
including Samsung and Europe's big chipmakers
STMicro and Dialog.
Europe's tech index fell 2.8 percent to put it on
track for its biggest one-day loss since October. The index had
reached a 15-year high earlier this month and has soared around
40 percent over the last year.
The pan-European STOXX 600 was down a more
manageable 0.6 percent, mildly supported by modest gains in oil
prices which lifted shares in energy stocks and by the first
round of parliamentary election results in France which look set
to give President Emmanuel Macron a huge majority to push
through his pro-business reforms.
Italy also offered some comfort after the eurosceptic 5-Star
Movement suffered a severe setback in local elections after
failing to make the run-off vote in almost all the main cities
up for grabs.
It spurred on debt markets. Italian government bond yields,
which move inverse to price, fell to their lowest since January
, Portugal's tumbled to nine-month lows
while France's bonds closed the gap on benchmark
"Macron doing well in the first round of the French
parliamentary elections bodes well for him getting a majority,"
said Lyn Graham-Taylor, fixed income strategist at Rabobank.
"The fact that 5-Star did poorly in local elections in Italy
also suggests a setback for populism in Europe."
The euro rose back to $1.1220 in the currency
markets where anticipation is also building ahead of Wednesday's
conclusion of a two-day meeting of the U.S. Federal Reserve.
The central bank is widely expected to nudge up U.S.
interest rates by another quarter point, but economists will be
watching to see whether the recent dip in economic data and wave
of uncertainty surround Donald Truump has weighed on confidence.
Britain's sterling also remained in focus as it
began to backslide again. It was hovering at $1.2730 and 88.08
pence per euro as Prime Minister Theresa May attempted to prop
up her position after her party's last week's damaging election.
"The political risks are mounting," said Kathleen Brooks,
head of research with City Index in London.
The dollar was a shade lower at 110.040 yen. The Bank
of Japan also meets this week and it too will be closely
following the yen's 4 percent gain since mid-May.
The dollar index against a basket of currencies nudged down
to 97.118, easing back from a nine-day high hit at the
end of last week after U.S. President Trump navigated the
testimony of ex-FBI chief James Comey.
On Tuesday, Attorney General Jeff Sessions will face
questions at a Senate hearing about Comey's firing and about
undeclared meetings with Russian officials, though it is unclear
whether he will testify in public or in private.
In commodities, crude oil prices extended gains after
rising on Friday when a pipeline leak in major producer Nigeria
overshadowed supply worries weighing on the market.
U.S. crude and Brent were both 0.6 percent
higher at $46.10 and $48.45 a barrel, respectively, while copper
rose for a fourth straight session and gold snapped a
three-day losing streak to climb to 1,269 an ounce.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Dhara Ranasinghe and Patrick Graham in
London; Editing by Andrew Heavens)