AMSTERDAM/LONDON — Marine Le Pen's far-right National Rally (RN) party won the first round of France's parliamentary elections on Sunday, exit polls showed, but the final result will depend on days of horsetrading before next week's run-off.

The euro gained around 0.23 per cent to trade around US$1.0736 (S$1.45) in early Asia-Pacific trading.

European markets have been rattled since President Emmanuel Macron's shock decision on June 9 to call a snap election.

The prospect of a far-right, or leftwing win has unsettled investors, as both have pledged big spending increases, which could undermine France's already fragile finances.

Comments:

Peter Goves, Head Of Developed Market Debt Soverign Research, Mfs Investment Management, London:

"A hung parliament would appear to remain the base case, loosely in line with market expectations. That said, uncertainties are high and the NR looks like it will be the largest party in the new Assembly.

"We would caution about drawing too firm an inference about the exact seat projection, because the high turn out has seen an eruption of three-way contests. This complicates matters.

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