Macron's Approval Falls to the Lowest Level Since Late 2018.

French President Emmanuel Macron's approval rating has reached its lowest level in 5 1/2 years, following his decision to call a snap vote after defeat in European elections. A poll conducted by Elabe for daily Les Echos showed that 24% of respondents trust Macron to address France's problems, a 5-point decrease from May. The poll suggests that Marine Le Pen's far-right National Rally has an increased chance of finishing first in the legislative ballot later this month, potentially giving the party more influence in economic policy. Macron's decision to dissolve the National Assembly and call for a two-round legislative ballot has caused turmoil in French equity markets, with the CAC 40 index falling 2% and the spread between French and German 10-year yields widening. The political uncertainty has also led to investors dumping French stocks and bonds, putting France at risk of losing its position as the largest equity market in Europe. Macron's high-risk strategy is seen by many as likely to consolidate his party's losses and undermine his economic agenda, potentially even giving Le Pen's party control. The strong performance of the National Rally has caused disarray among rival parties on the right, with the conservative Republicans expelling their president, Eric Ciotti, for reaching out to Le Pen's party. Le Pen has expressed her willingness to work with both the Republicans and Marion Marechal, the vice president of the nationalist Reconquest party, in order to secure a majority and impose her agenda on the president. The National Rally [Extracted from the article]