France’s Market Rally Falters as Investors See Enduring Risk
- European stocks, bonds pare early gains after Sunday vote
- Le Pen’s party may fall short of absolute majority on July 7
This article is for subscribers only.
Investors took comfort Monday that Marine Le Pen’s National Rally failed to record a decisive win in the first round of France’s snap parliamentary elections. The optimism is already fading.
Stock and bond prices jumped at the open after Le Pen’s party finished with a smaller margin of victory than indicated by polls, and opponents began strategizing to keep her from winning a majority in the second round. The CAC 40 Index pared its gains by half and bonds quickly erased a rally to push yields up on the day. Traders are questioning whether prices can move much higher in the face of turmoil that could end with the far right in power.