French stocks take beating, risk premium rises under specter of possible far-right victory

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The country's blue-chip index is heading for its worst week in more than two years.

France's blue-chip index is heading for its worst week in more than two years as investors weigh a potential far-right victory in the upcoming parliamentary elections.Jordan Bardella, President of the National Rally , a French nationalist and right-wing populist party, speaks to over 5,000 supporters on June 9th, at Le Dôme de Paris.

National Rally makes significant gains in the French legislature, handing them control over economic policy and other domestic issues. "Even if it's unchanged today, that would be the biggest weekly jump in the spread since the height of the sovereign debt crisis in late-2011," Reid said. The outcome could be a hung parliament, which does not make much further progress but does not reverse Macron's agenda, the analysts signaled — or a narrow National Front victory in which former party leader and star name Marine Le Pen focuses on her "main goal" of winning the 2027 presidential election.

 

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