Stock exchange - Strong start to the week for the DAX after the French election
After the first round of the French election, the German stock market started the new trading week with clear gains. The Dax rose by 1.04 percent to 18,426 points in the first trading minutes, after it had ended the month of June and the second quarter with a negative balance. The MDax gained 1.21 percent to 25,480 points on Monday morning.
For the Eurozone leading index EuroStoxx, it went up by around 1.8 percent. The Paris Cac 40 surged by 2.6 percent, as it had fallen to a low since January on Friday.
Since President Emmanuel Macron announced the dissolution of the French parliament and the calling of new elections following his poor performance in the European elections, the Cac 40 had dropped by nearly 6 percent.
In France, Right-wing and bourgeois parties are fighting for power after the first round of the parliamentary elections. Marine Le Pen's Rassemblement National (RN) hopes to win the absolute majority in the National Assembly with her first-round success and thus come to power. However, her lead is less clear-cut than expected.
The CAC 40, being the primary stock exchange index in France, experienced a significant dip following President Macron's announcement, but showed signs of recovery after the first round of elections. On the Frankfurt am Main stock exchange, the MDAX, which represents medium-sized German companies, also saw positive gains during the same period. The performance of stock exchanges, such as the CAC 40 and MDAX, can significantly impact the economy of their respective countries, France and Germany.
