Europe open: Stoxx up as far-right RN wins first round of French election

1st Jul 2024 08:00

(Sharecast News) - European shares opened higher at the start of the new trading week as investors assessed first round results in France's snap parliamentary election which showed the far-right anti-immigrant National Rally (RN) party in front.

The pan-regional Stoxx 600 index was up 0.97% to 516.38 in early deals, while France's CAC 40 was up 2.63% as the NR took the lead, but appeared to be struggling for an outright majority in next Sunday's second round of voting. President Emmanuel Macron's centrist alliance came third.

Leaders of both the leftwing New Popular Front and Macron's group on Sunday night said they would withdraw their own candidates in districts where another candidate was better placed to beat the RN in the July 7 runoff.

Investors will also be eyeing the UK General Election where incumbent Prime Minister Rishi Sunak's Conservative Party is trailing heavily in the polls against a backdrop of the highest tax burden and lowest living standards in 80 years, weak economic growth and crumbling public services.

In equity news, shares in Anglo American fell on news of a production suspension at its steelmaking coal mine in Queensland, Australia after a coal gas ignition incident over the weekend.

Reporting by Frank Prenesti for Sharecast.com