Stock market: The CAC 40 explodes following the legislative elections in France!

The day after the first round of the legislative elections in France, the stock market reacted positively, with a significant jump in the CAC 40. The Paris Stock Exchange recorded an increase of 2%! A reaction which seems to be influenced by the slightly lower than expected results for the National Rally.

Stock market: The CAC 40 soars in the first round of the legislative elections!

Investors showed notable relief! This led to a sharp increase in the opening of the European stock markets, and in particular the CAC 40. After four consecutive sessions of decline, the flagship index of the Parisian market rose by 2.51% to 7,667 points. This increase was mainly driven by banks. The latter were the first to suffer from the uncertainty generated by the announcement of early legislative elections.

According to the final results, the National Rally (RN) and its allies Les Républicains (LR) obtained 33.15% of the vote. Ahead of the New Popular Front (NFP), credited with 27.99%, and the presidential list “Ensemble” with 20.4%. The lower score of the RN compared to investors' fears was a key factor explaining the rebound of the indices at the opening of the stock market. In addition, French banks such as Société Générale, Crédit Agricole and BNP Paribas also recorded significant gains, with increases of between 5% and 7%.

Is it too early to claim victory?

However, despite this positive market reactionpolitical uncertainty remains. French assets could continue to be volatile in a context where the final results of the legislative elections are not yet known. Investors remain attentive to political developments and their potential impact on the economy, the stock market and financial markets.

This rebound in the CAC 40 after the first round of the legislative elections illustrates the sensitivity of the markets to political events. But also, their ability to react quickly to changes in the political landscape. As France continues to navigate an uncertain political climate, eyes remain glued to the Paris Stock Exchange to anticipate upcoming trends.