French stocks lead market gains
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July 1 Reuters European stocks gained on Monday, with French shares leading the charge after the farright National Rally RN party scored historic gains in the first round of parliamentary election, but by a smaller margin than what some polls had suggested.

France39;s bluechip CAC 40 index jumped 1.6 to lead gains among regional markets, with the country39;s main lenders, including BNP Paribas, Societe Generale and Credit Agricole, advancing between 3.8 and 4.8.

That helped the regionwide STOXX 600 index rise 0.6, snapping four consecutive sessions of losses.

The RN and allies had 33 of the vote, followed by a leftwing bloc with 28 and President Emmanuel Macron39;s centrists with just 20. The final result will depend on days of horsetrading before the July 7 runoff.

The market is starting to understand that a rightwing majority is less likely and less dangerous. That narrative unfolding could continue to be a source of shortterm relief for markets, said Ben Gutteridge, multiasset strategies portfolio manager at Invesco.

French assets have taken a battering since Macron called a snap election last month. The CAC 40 closed at its weakest level in more than five months on Friday on concerns over France39;s fiscal discipline under the new government.

European stocks came off session highs on Monday after a survey showed manufacturing activity…