Stocks, Euro Rise as Traders Parse French Election – Europe Market Wrap

European equities ended a four-day losing trend, and the euro climbed, as French election results indicated a lower likelihood of radical measures from the far-right.

Traders viewed the first round of parliamentary voting as an indicator that Marine Le Pen’s party has a more difficult route to ultimate success, lowering the risks of spending plans that might jolt financial markets. The 10-year gap between French and German debt fell to a two-week low.

France’s CAC 40 Index surged as much as 2.8% before recovering some of its gains. Banking companies led the increase in Europe’s Stoxx 600 Index, with French lenders Société Generale, BNP Paribas, and Credit Agricole all up more than 5%. The euro rose to its highest level since mid-June.