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01/07/24
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Stocks In Europe Higher After First Round of Vote in France
On Monday, stocks in Europe gained as French shares led the charge after the far-right RN (National Rally) party achieved historic gains in the first round of elections for parliament, but by less than what some opinion polls had indicated.
The blue-chip CAC 40 index in France rose 1.1% and led regional market gains. This helped the STOXX 600 region-wide index rise 0.3% as it snapped 4 straight sessions of losses.
The RN and allies accumulated 33% of the vote, followed by the left-wing bloc with 28% and the centrists of President Emmanuel Macron with 20%. The end result will depend on days of horse-trading before the run-off on July 7.
The European banks’ index that houses the main lenders in France including Credit Agricole, Societe Generale, and BNP Paribas, rose 2.8%, recording its best day in more than a year.
Since Macron called a snap election last month, French assets have been battered. On Friday, the CAC 40 closed at the weakest level in over 5 months on worries over fiscal discipline in France under a new government.
On Monday, European stocks dropped from session highs after a survey indicated manufacturing activity across the eurozone last month declined as demand dropped at a much faster rate.
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