Traders predicted Marine Le Pen’s National Rally will fall short of a majority in the French parliamentary elections as the value of the euro increased and stocks were on the verge of opening higher.

The euro gained 0.3pc against the pound to be worth nearly 85p, its highest level since before Emmanuel Macron called the snap vote on June 10.

Meanwhile, French bond futures edged higher, even as German and other global peers sold off. 

Investors had been concerned that a strong showing for National Rally could risk higher spending by the French government, which is already battling debts worth 112pc of GDP.

Kathleen Brooks, research director at XTB, added: “A hung parliament could make it hard to get anything done in France in the current parliament, which is exactly what the markets would like.”

The nationalist leader’s party was seen as winning around 34pc of the vote, while the Left-wing New Popular Front came second with around 29pc and Mr Macron’s Together coalition third with 20.5-23pc, according to various polls.

Vincent Juvyns, global market strategist at JPMorgan Asset Management, said: “Both camps’ fiscal policies are disruptive for the French economy and the prospects for the French debt. 

“For me it’s still wait-and-see.”

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