Reported about 1 year ago
French shares rebounded and the risk premium of French bonds over German narrowed as investors processed the election outcome, which resulted in a hung parliament in France. A left-wing surge blocked Marine Le Pen's far-right party from gaining power, leading to uncertainty about future governance. The CAC40 share index rose 0.4%, though remains down 4% since the election was called. Bond markets were uncertain, with French-German 10-year bond yield spread widening but later narrowing. The euro stabilized after an initial drop. Attention now shifts to the selection of France's next prime minister and the impact on economic policies and market stability.
Source: YAHOO