France’s Cac 40 index has seen a 1.5% increase, although lower than the previous surge. The euro has also gained 0.5% against the US dollar. Concerns over a potential hung parliament in France could impact spending and investor confidence. The yield on French bonds rose before the election, causing the spread between French and German debt to widen. Despite some relief after the election results, uncertainty continues. French mortgage approvals have dipped slightly in May. Meanwhile, there are questions about the future of Northern Irish manufacturing, with Harland & Wolff shares suspended due to accounting issues. UBS analysts predict the likelihood of a hung parliament in France, creating a period of political instability. They caution against overreaction in the markets as uncertainty persists. The French far-right National Rally and the leftwing New Popular Front are the main contenders in the upcoming second round of elections. The UK mortgage approvals were in line with expectations. Berenberg’s chief economist suggests that a hung parliament in France remains the most likely outcome, with possible consequences for economic policies and market reactions. The outcome of the second round of elections in France will determine the future direction of the country’s politics and economy.
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