The sell-off in French equities and government bonds after President Emmanuel Macron announced a surprise legislative election may have subsided, but investors are still nervous ahead of Sunday’s vote, with some warning of a potential debt catastrophe.
The far-right Rassemblement National (RN), led by Jordan Bardella, is likely to win the most seats in the National Assembly, followed by the left-wing alliance Nouveau Front Populaire (NFP).
The centrist alliance, which includes Macron’s own Rennaissance Party, is expected to place third.
The first round of voting on Sunday will be followed by a runoff on July 7, which might result in a deadlocked parliament.
This uncertainty, mixed with policy promises from both the left and right, now hangs over markets.
Source (CNBC)
