Stock Market: CAC 40 Soars Following the Legislative Elections in France!

The day after the first round of legislative elections in France, the stock market reacted positively, with a significant jump in the CAC 40. The Paris Stock Exchange recorded a 2% rise! A reaction that seems to be influenced by the slightly lower-than-expected results for the National Rally.

Stock Market: The CAC 40 Soars in the 1st Round of Legislative Elections!

Investors have shown notable relief! This led to a sharp rise in European stock markets, particularly the CAC 40. After four consecutive sessions of decline, the main index of the Paris market climbed 2.51% to 7,667 points. This rise was mainly driven by banks. These were the first to suffer from the uncertainty generated by the announcement of early legislative elections.

According to the final results, the National Rally (RN) and its allies, the Republicans (LR), obtained 33.15% of the vote. Ahead of the New Popular Front (NFP), credited with 27.99%, and the presidential list “Ensemble” with 20.4%. The lower-than-feared score for the RN compared to investor fears was a key factor explaining the rebound in indices at the stock market’s opening. Additionally, French banks such as Société Générale, Crédit Agricole, and BNP Paribas also recorded significant gains, with increases ranging from 5% to 7%.

Is It Too Early to Declare Victory?

However, despite this positive market reaction, political uncertainty remains. French assets could continue to be volatile in a context where the final results of the legislative elections are not yet known. Investors remain attentive to political developments and their potential impact on the economy, the stock market, and financial markets.

This rebound of the CAC 40 after the first round of legislative elections illustrates the sensitivity of markets to political events. But also, their ability to react quickly to changes in the political landscape. As France continues to navigate an uncertain political climate, eyes remain on the Paris Stock Exchange to anticipate future trends.