French stocks bounce back, but still below early June levels
CAC40 up 2.2%, STOXX 600 up 0.75%
French election result in focus
US futures up 0.2%
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FRENCH STOCKS BOUNCE BACK, BUT STILL BELOW EARLY JUNE LEVELS
French stocks are up 2% after the first hour or so of trading led by banks after a far-right win in Sunday's first round of voting that somewhat eased investors' uncertainty.
The CAC40 .FCHI is up around 2.2%, led by surging banks - Societe Generale SOGN.PA up 5%, Credit Agricole CAGR.PA up 4%. The midcap index of the next 60 largest stocks .CACMD is up 2.9%.
All had dropped sharply in recent weeks after the election was called, and remain below their pre election levels.
Marine Le Pen's National Rally (RN) party and its allies scored a historic win on Sunday, but whether the anti-immigrant, eurosceptic party will be able to form a government will depend on next week's decisive round and how successfully other parties manage to thwart Le Pen by rallying round the best-placed rival candidates in constituencies across France.
Mohit Kumar chief European Economist at Jefferies said the result was better than feared, and as "neither far right nor the far left would have a free mandate to implement extreme policies. Hence, the immediate reaction is one of a relief rally."
The news from France drove most other developments out of mind. The STOXX 600 is up 0.8% and other national indexes area also trading higher, Italy's FTSE MiB is second behind France, up 1.7%. .FTMIB
Anglo American AAL.L is also worth keeping an eye on. Its shares are off 3% after the miner suspended production at its Grosvenor steelmaking coal mine in Australia, a move which could have knock on effects on its restructuring plan.
(Alun John)
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For Monday's earlier live markets posts
FRENCH STOCKS SET TO RALLY AFTER FIRST ROUND OF VOTING CLICK HERE
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