French stocks fall 3.9% to lowest in four years

Frankfurt Dax: 3657.86 (+55.67)

Frankfurt Dax: 3657.86 (+55.67)

The German share market rallied strongly during low volume trade to end on a record closing high, shrugging off fears of a fall after the surprise left wing win in the first round of the French elections.

Paris CAC-40: 2654.74 (-108.16)

French stocks plunged 3.9 per cent to their biggest single day loss in more than four years yesterday after the left won the first round of the parliamentary election.

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The market received only a brief boost in after hours trading after the Prime Minister, Mr Alain Juppe, announced that he would not stay on as prime minister regardless of the final election outcome.

"The British and American reaction tomorrow will be the test. If there's a big selling movement the market could sell another 100 points," a trader said. "But if people remain watchful, it will stay at those levels."

Milan Mibtel: 12253 (-178)

Milan shares closed easier yesterday at around the day's lows following the decline in French stocks after the surprise lead of left wing parties shown in the first round of French parliamentary elections on Sunday.