French President Emmanuel Macron appears on a screen as he delivers a speech following results after the polls closed in the European Parliament elections - Gains for the far-right in European Parliament elections that prompted French President Emmanuel Macron to call a shock national vote puts the focus squarely back on political risks in Europe that financial markets had long put on the backburner.
The risk is a government less likely to comply with EU rules on keeping deficits in check, Deutsche Bank said, also noting a strong showing for the Socialist party. Longer-term, diminished prospects for programmes similar to the recovery fund would imply a higher structural risk premium on the bonds of the bloc's high debt countries, Citi analysts reckon.The Greens were one of the biggest losers of the EU elections.
Any retaliation would hurt European auto stocks, up 4% this year against a 8.5% rise in the broader market.