Reported 12 months ago
As the first round of the highly anticipated French parliamentary elections approaches on June 30, concerns over the rise of far-right influence causing a shift in France's political spectrum towards the right have led to a significant decline in both French stocks and bonds, as well as pressure on the Euro. The potential political earthquake in France has resulted in the CAC 40 index hitting a new low since January, with the index dropping by 6% in June, the largest monthly decline since May 2023. Bond prices in France also hit a seven-month low, causing a sharp increase in the ten-year French bond yield to 3.33%. With predictions indicating support for far-right and anti-immigrant parties in the first round of voting, scenarios like a 'cohabitation' government or a hung parliament loom, creating a period of uncertainty post-election regardless of the outcome.
Source: YAHOO