Wall Street is expected to rise and the European stock markets to gain at mid-session on Monday, with the markets relieved by the results of the first round of legislative elections in France, with the Rassemblement National (RN) scoring less than investors had feared.

Futures on New York indices were up 0.24% for the Dow Jones and Standard & Poor's-500, and 0.23% for the Nasdaq.

In Paris, the CAC 40 gained 1.53% to 7,593.57 points around 11:34 GMT. In Frankfurt, the Dax advanced by 0.36% and in London, the FTSE 100 gained 0.38%.

The EuroStoxx 50 index gained 0.92%, the FTSEurofirst 300 0.51% and the Stoxx 600 0.57%.

European stock markets, particularly Paris, surged on Monday, relieved by the results of the first round of parliamentary elections, despite the unprecedented victory of the far-right party.

The RN's first-round score of 33.15% was lower than feared by investors, who were concerned about a possible absolute majority for Marine Le Pen's party.

Party strategies to break the RN's momentum were the focus of attention on Monday, against a backdrop of divisions in the presidential camp.

However, according to analysts, a National Assembly without an absolute RN majority remains the baseline hypothesis, raising hopes for a limited increase in budget spending that would support France's debt sustainability.

On the macroeconomic front, investors learned that manufacturing activity in the Eurozone had deteriorated in June, with demand falling despite factory price cuts.

Another set of data showed a slowdown in inflation in five German Landër in June, suggesting that inflation at national level, expected later on Monday, may also have decelerated.

The President of the European Central Bank (ECB), Christine Lagarde, is also due to speak later today in Sintra, Portugal, at the institution's annual forum.

STOCKS TO WATCH ON WALL STREET

On Monday, Boeing announced the purchase of Spirit AeroSystems for $4.7 billion, following months of negotiations between the aircraft manufacturer and one of its key suppliers, which was in serious difficulty.

VALUES IN EUROPE

Atos, which had opened in the green, dropped 4.3% after announcing on Sunday that it had reached an agreement on the terms of its financial restructuring, which will place it in the hands of its creditors.

Air France-KLM was down 2.4% after declaring that it was anticipating a negative impact on its expected unit revenues for the summer season, with operators Air France and Transavia France noting a drop in traffic linked to the Paris Olympic Games.

French banks, battered since the announcement of the early elections in France, rose on Monday after the results: Société Générale, Crédit Agricole and BNP Paribas took between 3.7% and 5%.

RATES

The French risk premium retreated on Monday, as investors were relieved by the results of the first round of parliamentary elections, even if the political uncertainties ahead of the second round remain.

In France, the yield on the ten-year OAT gained 2.5 basis points to 3.3160%, while that on the German Bund rose by 8.3 basis points to 2.5700%.

The spread between French and German 10-year sovereign bond yields stands at 74 basis points, having reached 85.2 on Friday before the first round of French legislative elections, its highest level since July 2012.

In the US, the yield on 10-year Treasuries rose by 6.9 basis points to 4.4119%.

CURRENCIES

On the foreign exchange market, the European currency gained 0.33% to $1.0748 after the first round of legislative elections in France.

The dollar lost 0.20% against a basket of reference currencies.

OIL

Crude oil rose slightly as markets anticipated OPEC production cuts in the third quarter and higher demand this summer, although gains were limited by rising production elsewhere and political uncertainties in Europe and the United States, notably after Joe Biden's shaky performance in the first debate with Republican Donald Trump last Thursday.



MAIN ECONOMIC INDICATORS ON THE JULY 1ST AGENDA:

COUNTRY GMT INDICATOR PERIOD CONSENSUS PREVIOUS 12:00 PM Inflation (1st estimate) June +0.2% +0.2% Over one year

- year-on-year +2.6% +2.8% USA 14h00 ISM manufacturing index June 49.2 48.7



(Some data may be slightly delayed)

(Written by Diana Mandiá, edited by Kate Entringer)