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Investing.com - UBS analysts believe that potential new elections in France before year-end would likely not produce significantly different results from those seen in 2024.
The Swiss banking giant noted in its recent analysis that France’s two-round voting system at the district level would likely moderate any dramatic shifts in the political landscape, even if new elections were called.
UBS acknowledged that calling new elections could still pose a headwind for the euro, particularly affecting the EUR/CHF currency pair.
However, the bank suggested that market impact might be "dulled by a more wait-and-see approach this time" compared to previous French electoral cycles.
The analysis concluded that a "high base level of French political situation seems to be well priced in" to current market valuations, indicating that investors have already factored in considerable political uncertainty in France.
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