'Huge political gamble': France's Macron calls for snap election his rival Le Pen could easily win

• French President Emmanuel Macron's decision to call a snap national election after a surge for his rivals is a gamble.
• Macron's decision to call a snap parliamentary vote comes after the right-wing National Rally (RN) party won around 31% of the vote in Sunday's European Parliament election.
• That was more than double the 14.6% seen for Macron's pro-European and centrist Renaissance party and its allies.
• France's CAC 40 slumped 1.8% in the early hours of trading Monday morning with French banks trading sharply lower. 

French President Emmanuel Macron's decision to call a snap national election after a surge for his far-right rivals is a high-stakes move and a huge political gamble, analysts say.

Macron's decision to call a snap parliamentary vote comes after the right-wing National Rally (RN) party, with Marine Le Pen as the figurehead, won around 31% of the vote in Sunday's European Parliament election. That was more than double the 14.6% seen for Macron's pro-European and centrist Renaissance party and its allies.

France's CAC 40 slumped 1.8% in early trading Monday morning with French banks trading sharply lower. BNP Paribas and Societe Generale led the Stoxx 600's losses, both down by around 6%. The euro was also down some 0.4% against the dollar amid the uncertainty.

"This is an essential time for clarification," Macron said in a national address Sunday evening as he announced his decision to dissolve Parliament.

"I have heard your message, your concerns and I will not leave them unanswered ... France needs a clear majority to act in serenity and harmony," he added. The first round of voting will take place on June 30, with a second to be held on July 7.

As it stands, Macron's Renaissance party has 169 seats in