The euro rose and Paris equities surged on Monday, driven by signs that the French far right may not secure an absolute parliamentary majority and take control of the government. Concerns about Marine Le Pen’s party leading to a collision with the EU had previously weighed on the euro.
The single currency reached $1.0777, with analysts predicting further gains as other parties strategize to limit the far right’s influence. In Paris, the CAC 40 index soared by 2.6% as campaigning intensified before the runoff elections.
Elsewhere in Europe, Frankfurt’s DAX index rose 1.1%, while London’s FTSE 100 climbed 0.6% ahead of the UK general election. Amidst political shifts, market reactions remain volatile, reflecting investor sentiments.