The first round of French parliamentary elections was held yesterday. Preliminary results showed that leftwing alliance led by Jean-Luc Melenchon is in the lead with 25.6% of votes. It came slightly ahead of the centrist bloc represented by President Macron, which received 25.2% support. The second round of voting will be held on Sunday, June 19. Flash results of the first round signal that there is a real possibility of centrists losing majority in the parliament, what will make running the country more difficult for Macron and implement planned reforms, like increase in retirement age or changes to unemployment benefits. Politicians from the centrist bloc said that turnout was a key issue that weighed on its results as it is estimated to have reached a record low of around 47%. This shows that the French nation is growing more weary and angry with the whole political class, which is unable to cope with problems like rising costs of living.
French CAC40 (FRA40) launched a new week's trading lower. However, the move is more likely a result of overall downbeat attitude in the markets, rather than results of the first round of parliamentary elections. Taking a look at the index at D1 interval, we can see that FRA40 is trading within the support zone ranging below 23.6% retracement of the Q1 2022 drop. Bulls are trying to prevent a break below 6,050 pts, marking early-May low. A break below would pave the way for a drop towards the early-March low in the 5,750 pts area.
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Source: xStation5
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