European stocks as well as the euro staged a nervous rally on Monday as the far right took a smaller lead in the first round of France’s election than some expected, suggesting a hung parliament could result and hamper the party’s agenda.
The election has unsettled markets as both the far right and the left-wing alliance that came second have pledged heavy spending at a time when France’s high budget deficit has already prompted the European Commission to recommend disciplinary steps.
The S&P 500 rose 0.3%. France’s CAC 40 Index jumped as much as 2.8% before retracing some gains. Banking…
