Stock market | Delighted by the election result, the Paris stock market went up strongly

Share prices took off on Monday on the Paris Stock Exchange after the first round of the French parliamentary elections.

The CAC 40 index, which describes the price development of the most important companies on the Paris Stock Exchange, rose by more than two percent on Monday. At a little after two o’clock in the afternoon, the index was still up by about 1.6 percent.

The exchange rate of the common currency, the euro, also strengthened.

The market was estimated to react positively to the information that the far-right National Alliance was unlikely to get a simple majority in the French National Assembly, or parliament.

On the market concern has been raised that, upon obtaining a simple majority, the National Alliance would pursue a generous economic policy, which would put France on a collision course with the EU, which supervises the economic policies of the member states.

Along with the Paris stock market, stock markets in other parts of Europe have also been on a moderate rise.

After two in the afternoon, the Stoxx 600 index, which broadly tracks European shares, was up 0.5 percent, the Dax index of the Frankfurt Stock Exchange was up 0.4 percent, and outside the eurozone, the FTSE 100 index of the London Stock Exchange was up 0.3 percent.

The Helsinki Stock Exchange has also been in a strong mood on the first trading day of the second half of the year. The general index of the Helsinki stock exchange was up 1.2 percent after two in the afternoon.

Election predictions according to The National Coalition is taking victory in the first round of the French parliamentary elections with about a third of the votes. However, it is still unclear whether the party will get the 289 seats needed for a simple majority in France’s 577-seat National Assembly.

The second round of the elections will be held next Sunday.