(Bloomberg) — A renewed wave of anxiety gripped global markets as concern over a political crisis in France deepened, driving stocks down while spurring a flight to haven assets — from bonds to gold and the US dollar.

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Equities dropped around the world, with French shares this week losing roughly $210 billion in value — about the size of Greece’s economy — after President Emmanuel Macron called a snap election. The nation’s bonds were at the heart of the rout, with the premium that investors demand to own 10-year debt over safer German peers seeing its biggest weekly surge on record.

ECB Officials See No Cause for Alarm Over French Market Turmoil

“The situation in Europe is starting to get a little dicey,” said Matt Maley at Miller Tabak + Co. “The move is still a long way from developing into another sovereign debt crisis, but with concerns about sky-high sovereign debt levels and bloated budgets, the developments in Europe (and particularly France) are raising some concerns in the marketplace.”

In the US, the stock market also fell as a gauge of consumer sentiment unexpectedly sank to a seven-month low as high prices continued to take a toll on views of personal finances. Apple Inc. was hit after a news report saying the European Commission plans to allege the company stifles competition on its mobile app store.

The S&P 500 dropped to around 5,420. The Stoxx Europe 600 fell 1%. France’s CAC 40 Index extended losses to over 6% on the week, its biggest slide since March 2022. Societe Generale SA, BNP Paribas SA and Credit Agricole SA — all big holders of government debt — lost more than 10% each this week.

Treasury 10-year yields declined two basis points to 4.22%. The dollar headed toward its highest since November. The euro is among the worst-performing major currencies this week against the greenback, with volatility metrics for the next month soaring.

European Central Bank officials see no cause for alarm in the market turbulence that has engulfed France in the past few days, according to people with knowledge of the matter. A spokesperson for the ECB declined to comment.

Trader anxiety grew after a coalition of France’s left-wing parties presented a manifesto to pick apart most of Macron’s seven years of economic reforms and set the country on a collision course with the European Union over fiscal policy.

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“Given the relevance of the French economy to the EU as well as flashbacks to Brexit, we’re sympathetic to the flight-to-quality and the fact that one would need to seriously consider the longer-term prospects for the EU in the event that France follows the UK and leaves the building, as it were,” said Ian Lyngen and Vail Hartman at BMO Capital Markets.

To Thierry Wizman at Macquarie Group, France is moving toward one of two extreme political scenarios.

“Neither of assemblage is dedicated to pro-market principles, nor fiscal responsibility, nor, possibly the single currency.”

European stock funds suffered a fourth week of outflows at about $600 million, while cash funds had additions of $40.4 billion — the biggest among all the asset classes, according to a note from Bank of America Corp.

About $6.3 billion flowed into global stock funds in the week through June 12, with US equities registering an eighth week of inflows, according to the note citing EPFR Global data. Europe is the only region seeing outflows this year.

European stock flows are at risk of further unwind without a positive catalyst to reassure foreign investors in the near term, Barclays Plc says.

Strategists led by Emmanuel Cau closed their overweight stance earlier this week and advise caution on region for now, citing the political situation in France.

“We struggle to see a compelling reason to overweight continental Europe, even while it has become more consensus year-to-date,” they wrote.

Transactions of more than $1 million among the dollar-denominated bonds of major French banks have proliferated in recent days and are now much more frequent than large-ticket trades in their euro-area peers, based on Trace data compiled by Bloomberg.

That’s hit the debt of major lenders like BNP Paribas and Credit Agricole.

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Some of the main moves in markets:

Stocks

The S&P 500 fell 0.2% as of 1:03 p.m. New York time

The Nasdaq 100 rose 0.2%

The Dow Jones Industrial Average fell 0.2%

The MSCI World Index fell 0.4%

Currencies

The Bloomberg Dollar Spot Index rose 0.2%

The euro fell 0.3% to $1.0702

The British pound fell 0.6% to $1.2688

The Japanese yen fell 0.2% to 157.32 per dollar

Cryptocurrencies