Investors Bet French Assets Face Months Of Volatility After Election
- Investors warn that markets could be volatile for months
- Options prices imply smaller equity moves after Sunday vote
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No matter which party comes out on top in Sunday’s French parliamentary election, some investors are betting the vote marks the beginning of a more turbulent period for the country’s stock and bond markets.
Traders are growing increasingly confident that the worst-case scenario — an absolute majority in France’s lower house for Marine Le Pen’s far-right National Rally — will be avoided. Still, the alternative is gridlock, preventing France from addressing its swollen budget deficit and ending President Emmanuel Macron’s pro-business reforms.