French Markets Churn as Traders Grapple With Election Curveball

The lack of any clear winner in the French elections is being viewed with some relief by investors, who speculated that there’s unlikely to be any major policy changes while the government is deadlocked.

French stocks rallied on Monday alongside a broad advance in the European market, while bonds and the euro posted small moves. While benchmark bond spreads are still wider than before the election, a reflection of the persistent worry over the country’s debt burden, they’ve tightened recently as it looks unlikely that the far-right or far-left will be able to push through their big spending plans.