the markets breathe a sigh of reduction after the primary spherical | EUROtoday

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Lhe monetary markets appear to be reacting properly on Monday 1er July, the day after the outcomes of the primary spherical of the European legislative elections. European inventory markets have certainly skilled a rebound and an increase within the euro, seeming to rule out the speculation that the National Rally (RN) might receive an absolute majority within the National Assembly on the finish of the second spherical, Sunday July 7 .

In element, the Paris Stock Exchange jumped 2.06%, whereas Frankfurt gained 0.37% and London 0.35%. The development is comparable on the international alternate market the place the euro gained 0.42% in opposition to the greenback, to 1.0780 {dollars} per euro. On the bond market, the hole between the rate of interest on France's ten-year mortgage and that of Germany, the benchmark in Europe, is narrowing after hitting a peak since 2012 the earlier week. This hole is an indicator that measures investor confidence in a rustic and, on this case, France.

“The risk of a radical change in policy in France has diminished and the sigh of relief on the stock markets is clearly being felt this morning,” Jochen Stanzl, market analyst at CMC Markets, advised Agence France-Presse. “What the market feared most was an absolute majority, on both sides. For the moment, for the National Rally, this scenario has not yet been ruled out, but we can see that negotiations have begun on the issue of withdrawals,” burdened John Plassard, funding specialist for Mirabaud.

Prices of French banks up sharply

Banks listed on the CAC 40 index additionally welcomed the outcomes on the polls. Société Générale gained 5.98%, Crédit Agricole 4.12% and BNP Paribas 3.71%. Other corporations which have been struggling for the reason that dissolution – reminiscent of Vinci (+3.88%), Eiffage (+4.06%), TF1 (+6.31%) and Engie (+3.79%) – have been additionally up sharply.

Finally, oil costs are nonetheless on an upward development on Monday after reaching their highest stage in nearly two months on Friday June 28. The value of a barrel of Brent from the North Sea for supply in August gained 0.71% to 85.61 {dollars} and a barrel of American West Texas Intermediate (WTI) of the identical maturity gained 0.76% to 82.16 {dollars}. Bitcoin for its half gained 2.18% to $63.256.

Negotiations geared toward “blocking” the National Rally have begun

In the primary spherical of the early legislative elections, the National Rally got here out on high with greater than 33% of the vote, barely under the newest polls. The New Popular Front reached practically 28% and the presidential camp round 21%. This election was marked by a really excessive participation, particularly 66.71% in keeping with these last outcomes. This is a report for one of these election since 2002.

Seventy-six deputies obtained greater than 50% of the votes of their constituency and have been subsequently elected within the first spherical; 190 constituencies will lead to a duel, whereas 306 others will provide a three-way race to voters. Finally, 4 candidates certified for the second spherical in 5 constituencies.

Some candidates are nonetheless anticipated to withdraw with a purpose to “block” the far proper. The former chief of La France Insoumise, Jean-Luc Mélenchon, in a short time introduced {that a} candidate from the New Popular Front who got here simply off the rostrum would withdraw. Prime Minister Gabriel Attal additionally dedicated to this concerning the candidates from his camp who got here third, however provided that or not it’s in favor of an opponent who shares “the values ​​of the Republic.”