What the markets have wrong about the French election results 

The Paris stock market is soaring. French bonds are rising once again, and the banks are suddenly looking a lot healthier. As the results of the French elections came through overnight, and it looked less likely that Marine Le Pen’s National Rally would have enough votes to form a government by itself, investors started to buy into France. Sure, the result might be messy, but chaos is a lot better than the shambolic mix of protectionism and welfare spending that passes for an economic plan for the NR. But hold on. In reality, the crisis has just been postponed – and the crash when it comes will be far worse.

It was certainly a good morning for French assets. In early trading, the benchmark CAC-40 index rose by 2.4 per cent, its best daily performance for two years.