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June 10 (Reuters) - European stocks dropped on Monday

after French President Emmanuel Macron called a snap election

following a heavy loss in the European Union vote to the

far-right, rattling investors already worried about the interest

rate outlook.

France's blue-chip CAC 40 index dropped 1.8% to

touch a more than three-month low, with lenders including BNP

Paribas, Societe Generale and Credit

Agricole falling in the range of 3.8% and 5.5%.

Yield spreads between benchmark Bund and euro area

government bonds widened after Eurosceptic nationalists made

gains in European Parliament elections on Sunday, prompting a

bruised Macron to call a snap national election.

The pan-European STOXX 600 index fell 0.7% by 0711

GMT, with regional markets including Germany's DAX and

Spain's IBEX down 0.7% and 1.0%, respectively.

Equity markets came under pressure on Friday after a

stronger-than-anticipated U.S. jobs report fanned worries that

the Federal Reserve would not cut interest rates anytime soon.

(Reporting by Sruthi Shankar in Bengaluru; Editing by

Subhranshu Sahu)