Chief Investment Officer Daniel Varela's account of the financial markets following the French election results appeared in Bloomberg on 1 July 2024.
The first reactions from financial market participants are in, and they are mostly saying a lot has been priced in already by investors, given the drop in French stocks and bonds in the past three weeks.
“The election outcome is indeed quite in line with polling predictions,” says Daniel Varela, chief investment officer at Piguet Galland & Cie SA. “The absence of an absolute majority in parliament raising the risk of a gridlock and minority government is probably the most likely and, all things considered, the least unfavorable scenario for the markets.”