The results of European Parliament elections came as a surprise to many, especially the very good showing of far-right parties in France and Germany. While final results did not differ much from opinion polls conducted prior to the ballot itself, they seem to have caught markets of guard. This is especially true when it comes to France, where far-right National Rally (RN) party won 32% of votes, while Renaissance party of president Macron secured just 15% of the votes. Jordan Bardella, leader of RN, has immediately called onto president Macron to dissolve parliament and call snap elections. Macron indeed announced dissolution of the parliament and said that snap elections will be held at the end of this month - first round on June 30 and the second round on July 7. This creates a massive political uncertainty in France and this uncertainty is reflected in the markets today, with the French CAC40 (FRA40) plunging over 2%. Euro is also trading under pressure, being the worst performing G10 currency and trading 0.3% lower against the US dollar.
CAC40 (FRA40) plunges 2% after Macron called snap elections in the wake of strong showing of far-right National Rally in European Parliament elections. Index slumped below 7,920 pts area, which marked a floor for prices recently, and is trading at the lowest level in three-and-half months. Source: xStation5
