French Prime Minister (PM) Lecornu secured wins in two no-confidence motions in the National Assembly, triggering a rally in French stocks, and paving the way for additional discussions over a draft budget. Markets welcomed the news that the country, for the time being, has avoided snap elections and the political uncertainty has eased.
“French stocks and bonds welcomed the narrow victory of Prime Minister Lecornu in the two no-confidence motions in the National Assembly that earlier threatened to topple his minority government.”
- After this week’s relief rally, the CAC 40 is nearly back to its February highs, having almost fully recovered prior losses.
- Government bond yields also fell this month, indicating declining political uncertainty.
- Volatility could return amid risks over budget discussions and uncertainty over the government’s future.
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