FX.co ★ CAC 40 Gains As Elections End Up With No Clear Majority

On Monday, French stocks experienced a notable rise following an unexpected defeat for the far-right National Rally in France.

A leftist coalition surged forward, securing the most seats in parliament during the second round of elections. However, no single political group came close to achieving the majority needed to establish a government. This political upheaval has significantly weakened the president's authority and has shaken the foundations of the European Union's second-largest economy.

Meanwhile, investors grew increasingly optimistic about a potential U.S. rate cut in September, spurred by last week's unexpectedly weak employment data.

The benchmark CAC 40 index gained 67 points, or 0.9%, reaching 7,742, after a 0.3% decline on Friday.

Banking sector stocks surged, with BNP Paribas, Credit Agricole, and Societe Generale all posting gains between 1% and 2%.