European stocks fell more than 1% on Monday as worries about an economic slowdown in China and rapid US interest rate hikes overshadowed relief from French President Emmanuel Macron’s election victory over the weekend.

By 0705 GMT, the pan-European STOXX 600 index slumped 1.9% to its lowest since mid-March.

France’s CAC 40 dropped 2.0% and Germany’s DAX was down 1.9%.

The euro got a brief lift after Sunday’s election results showed pro-EU centrist Macron in the lead, reassuring markets about France’s commitment to an integrated Europe even if his economic platform now depends on parliamentary elections in June.

European stocks slide as traders brace for rate hikes

French stocks outperformed the wider STOXX 600 index over the past two weeks on hopes of Macron’s re-election after his relatively small poll lead over Le Pen, who favours nationalising key industries and slashing taxes, had kept investors on edge earlier.

Asian stocks had their worst session in a month and a half on Monday as fears grew that Beijing was on the verge of joining Shanghai in lockdowns.

Major Wall Street indexes slumped over 2.5% on Friday as investors priced in aggressive actions by the US Federal Reserve to tame inflation.