Legislative. Financial markets display their (relative) serenity in the face of political uncertainties

After a very moderate decline at the opening of the Paris Stock Exchange, the CAC 40 did not wait more than two hours, this Monday, July 8, to recover to +0.8%. Same scenario at the Frankfurt Stock Exchange where the Deutscher AktienindeX (DAX), the main German stock index, was up 0.7%, reports Handelsblatt.

On the currency market, the euro lost just 0.06% against the dollar at the start of the day. As for the spread, which measures the difference in yield between French and German government bonds – supposed to act as a barometer of the instability of the French economy – it peaked at 68.3 basis points after having exceeded 80 points the day after Emmanuel Macron announced the dissolution of the National Assembly, remember Bloomberg.

The initial nervousness of the financial markets therefore quickly dissipated, “investors were relieved that the National Rally (RN), the right-wing populist party, failed to secure a majority,” noted the German daily.

In fact, the markets were also unenthusiastic about the economic program of the New Popular Front (NFP), “which would constitute a major break with the pro-business policy and the zeal

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