Stock Market, All of Europe Celebrates Macron’s Defeat: Paris Soars After Vote

Stock Market, Paris rises sharply after the vote. Milan also does well. The spread between French and German bonds falls

Piazza Affari closes sharply higher driving gains in Europe after the outcome of the first round of the French parliamentary elections. The polls showed that the chances of an absolute majority for the Rassemblement National of Marine Le Pen and Jordan Bardella have decreased and those of a technical government or the possibility of an alliance between the other political forces (Fronte Popolare and Ensemble) have increased, giving investors confidence. The Ftse Mib maintains its gains and closes up 1.7% at 33,716 points.

Euphoric session for financial and banking companies in particular with Banca Mps up 6.7%Unicredit +4.62%, Bper +5.83%, Intesa 3.18%, and Banco Bpm +3.36%. Tim rises by 1.12% on the day of the closing for the birth of Netco. Among industrialists, Stellantis at +0.89% and Pirelli +1.01%. Azimut rises to +1.63%. Also in sight are the energy stocks with the largest capitalization with Eni and Enel respectively at +1.24 and +1.74%. Prysmian is down, losing 1.94%, Stm -1.76%, Campari -1.59% and Inerpump -1.16%.

European stocks close higher after French vote

European stock markets close higher after French vote, in the wake of signs that the far right would not win enough seats for an overall majority in the legislative electionse. Marine Le Pen’s far-right National Rally party won a resounding victory in Sunday’s first round of voting, while President Emmanuel Macron’s centrists remained in third place behind a left-wing coalition.

But the main unknown ahead of the second round on July 7 is whether the RN will obtain an absolute majority in the new National Assembly. Investors’ fears, partially allayed by the results of the first round, are that this could create the conditions for a clash between France and the EUresulting in serious disruptions for European markets and the euro. The Cac 40 index in Paris recorded a +1.09% at 7,561.13 points, the Ftse 100 marked a +0.04% at 8,167.76 points and the Dax 30 in Frankfurt advanced by 0.33% to 18,294.5 points. The Ftse Mib rose, closing the session in Milan with a gain of 1.70% at 33,716.54 points.

Spread between France and Germany falls to 73 basis points

Spread between French and German government bonds in clear decline: after the first round vote in France, the spread at the start of the session on the electronic markets is at 73 basis points against the 79 at the close on Friday, thanks to the stability of the Paris product and an increase in yields of that of Germany. The movement for the Italian spread was similar, which opened at 153 ‘basis points’ against the 157 of the closing on Friday, with the BTP rate calm at 4%.