European stocks rally after first round of French vote

Published On : 07/01/2024

European stocks rally after first round of French vote

(Reuters) – European stocks rallied on Monday, with French shares leading the way after the far-right National Rally (RN) party scored historic gains in the first round of parliamentary election, but by a smaller margin than what some polls had suggested.

France’s blue-chip CAC 40 index jumped 2.6% to lead gains among regional markets, with the country’s main lenders including BNP Paribas, Societe Generale and Credit Agricole advancing between 4.8% and 7.9%.

That helped the region-wide STOXX 600 index scale 1% by 0709 GMT, after four consecutive sessions of losses.

The RN and allies had 33% of the vote, followed by a leftwing bloc with 28% and President Emmanuel Macron’s centrists with just 20%, but the final result will depend on days of horsetrading before the July 7 run-off.

The market reaction was mostly a case of ‘buy the rumour sell the fact’ and chatter that National Rally may not secure an absolute majority in the second round, said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

The CAC 40 closed at its weakest level in more than five months on Friday on concerns about France’s fiscal discipline under the new government.

Among single stocks, Atos climbed 11.7% as the French technology company reached an agreement with a group of banks and bondholders on terms for its debt restructuring.

Nestle rose 1.1% after its CEO said in an interview to a local weekend paper that the Swiss food giant is targeting stable growth in sales volumes from the second quarter throughout the remainder of the year as cost inflation eases.

(Reporting by Sruthi Shankar and Jesus Calero; Editing by Savio D’Souza)

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.