The results of the European Parliament elections came as a surprise to many, especially the strong performance of far-right parties in France and Germany. Although the final results do not differ much from the opinion polls conducted before the vote itself, they appear to have caught the markets on their guard. This is especially true when it comes to France, where the far-right National Rally (RN) party won 32% of the vote, while President Macron’s Renaissance party secured just 15% of the vote. Jordan Bardella, leader of RN, immediately called on President Macron to dissolve parliament and call early elections. Macron has in fact announced the dissolution of parliament and said that early elections will be held at the end of this month: the first round on 30 June and the second round on 7 July. This creates huge political uncertainty in France and this uncertainty is reflected in today’s markets, with the French CAC40 (FRA40) down more than 2%. The euro is also trading under pressure, being the worst performing G10 currency and trading 0.3% lower against the US dollar.
CAC40 (FRA40) falls 2% after Macron called early elections in the wake of a strong showing by the far-right national rally in the European Parliament elections. The index has fallen below the 7,920-point area, which recently marked a low for prices, and is trading at its lowest level in three and a half months. Source: xStation5
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