French Election Results Shake Markets
Overnight, financial markets were abuzz with the latest developments in the French elections.
After a strong showing in the first round, Le Pen’s Rassemblement National (RN) experienced a significant decline over the weekend, falling from first to third place. Tactical voting in Sunday’s second round thwarted Marine Le Pen’s far-right party, leaving France in a state of political uncertainty as no party secured an absolute majority.
In a surprising turn, the New Popular Front (NFP) — a coalition of parties ranging from the far-left France Unbowed to the moderate Socialists and Ecologists — emerged with 182 seats in the National Assembly. This made them the largest group, yet still short of the 289 seats needed for a majority.
Macron’s centrist Ensemble alliance secured 163 seats, while Marine Le Pen’s far-right National Rally (RN) and its allies claimed 143 seats. Following these results, French Prime Minister Gabriel Attal, a protégé of Macron, announced his resignation effective Monday morning. The identity of his successor remains uncertain.
The euro has reacted to these developments by dropping, as France enters a period of political and fiscal uncertainty.
Today’s economic calendar is relatively quiet, with only German trade export/import numbers and US consumer credit data expected to draw any interest. The focus will shift to the UK on Thursday, with GDP, Industrial Production figures, and CPI numbers due to be released.
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