European equities are anticipated to open the new trading week on a positive note as investors analyze the aftermath of the initial round of France’s impromptu parliamentary election.
The UK’s FTSE index, Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB were all seen edging higher at the open on Monday.
The European markets will be responding to the results of the first phase of the snap parliamentary election in France, which witnessed a significant surge in support for the anti-immigrant National Rally party.
Marine Le Pen’s far-right National Rally (RN) party emerged victorious in the initial round of France’s parliamentary elections on Sunday, bringing it closer to potentially attaining power than ever before.
Following a notably high voter turnout, the RN bloc secured 35.15% of the vote, outpacing the left-wing New Popular Front (NFP) coalition which attained 27.99%, while President Emmanuel Macron’s Ensemble alliance faltered to a mere 20.76% and landed in third position, as per the final results released by the Interior Ministry on Monday.
Although the RN seems to be in a promising position to secure the highest number of seats in the National Assembly, it might fall short of the 289 seats necessary for an outright majority, suggesting that France could be on course for a hung parliament and increased political uncertainty.
Preliminary indications hint at challenges in achieving an absolute majority in the upcoming second round of voting scheduled for July 7, with French President Emmanuel Macron’s centrist alliance lagging behind in third place on Sunday.
