Paris benchmark index briefly climbed 2.8% after the far-right National Rally took a lead in the first round of legislative elections.
French shares soared on Monday, with the Paris benchmark index briefly climbing 2.8% after the far-right National Rally took a commanding lead in the first round of legislative elections.
The CAC 40 in Paris eventually settled, showing a 1.6% gain at 7,594.08, while Germany’s DAX saw a 0.5% rise to 18,320.36. In London, the FTSE 100 also increased by 0.5%, reaching 8,203.40.
The euro strengthened, reaching $1.0771 from $1.0744, driven by speculation that the National Rally could secure a majority in the lower house of Parliament. However, the overall outcome remains uncertain due to the complexity of the voting system.
Economists at ING Economics noted that the euro’s gains likely reflect relief that the far-right parties did not outperform expectations. They cautioned, however, that the first-round results offer limited clarity on the parliament’s future composition, with the second round next weekend posing a significant risk.
