France’s Chaotic Week Ends on High Note as Traders Dip In

  • CAC Index has rallied for seven days as stocks bounce off lows
  • Traders say political limbo will keep French bond spreads wide

The lobby of the Euronext NV stock exchange in Paris.

Photographer: Nathan Laine/Bloomberg

For a week that saw the collapse of the French government, it was a good time to be an investor.

The CAC 40 Index of stocks is about to cap its best week in two months with a 2.8% advance. Bonds rallied, pushing spreads to the narrowest level in two weeks. And the euro has stopped plunging, finding a floor around $1.05.