Exit polls, which were in line with the opinion surveys, showed Marine Le Pen’s RN party emerging ahead in the first round, winning around 34% of the vote, comfortably ahead of leftist and centrist rivals.
The chances of eurosceptic, anti-immigrant RN winning power next week though remain uncertain, and will depend on the political dealmaking by its rivals over the coming days, with horse-trading already under way.
The better-than-feared results lifted the euro, with the single currency touching a two-week peak of $1.076175, while stocks futures climbed 1% and French OAT (bond) futures gained 0.12%.
The broader French market will likely get a boost, especially as the blue-chip CAC 40 index has dropped 6% since French President Emmanuel Macron dissolved parliament.
Analysts though point out that the week may still be volatile as the RN could gain a majority in next Sunday’s runoff.
Traders and markets are concerned that the far-right, as well as the left-wing alliance that came second on Sunday, have pledged big spending increases at a time when France’s high budget deficit has prompted the EU to recommend disciplinary steps.
