LONDON (Reuters) – French Prime Minister Francois Bayrou lost a confidence vote on Monday, plunging the euro zone’s second largest economy deeper into political crisis.

The euro showed little initial reaction, showing a 0.2% daily rise to trade at $1.1743, down from an earlier high of $1.1756, while French bond and stock futures both held onto the day’s gains, up 0.3% and 0.6%, respectively.

Financial markets had anticipated the no confidence vote would fail, while French markets face another test on Friday when Fitch Ratings reviews its AA- French rating with a negative outlook.

COMMENTS:

JUAN PEREZ, DIRECTOR OF TRADING, MONEX USA, WASHINGTON:

“There was very little reaction to the French vote and the resignation of the prime minister because it was desired and expected. Truth is tha

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