Reported about 1 year ago
Since French President Macron announced the dissolution of parliament and early elections on June 15, 2024, markets have been concerned that France might follow the UK in leaving the EU, leading to turmoil in European markets with stocks, bonds, and currencies all struggling. While European Central Bank officials remain calm, stating that the situation is under control and there is no need for panic, the euro has depreciated against the dollar, stock indices like the Stoxx 600 and DAX have fallen significantly, and bond yield spreads have widened. Macron's move to combat far-right forces has put his party at risk, with recent polls showing lower support for his centrist alliance compared to far-right and left-wing coalitions. The uncertainty in France has spread to the entire European market, with funds flowing out of Europe as US funds continue to see inflows.
Source: YAHOO