French stocks and the euro rallied Monday after results from the first round of elections suggested the far right will inflict a heavy defeat on President Emmanual Macron but fall short of winning an outright majority in parliament.

France’s CAC 40 index, which represents 40 of the biggest companies listed in Paris, rose 2.7% at the open.

The euro, which tumbled after Macron called the snap election on June 9, touched the strongest level against the dollar in more than two weeks.

Yields on French government bonds, or returns demanded by investors for the risk of holding them, were broadly unchanged after widening significantly compared with their ultra-safe German equivalents in recent days.

After unusually high voter turnout Sunday, Marine Le Pen’s far-right National Rally party led the first round, clinching 33.15% of the vote, while the left-wing New Popular Front coalition came second with 27.99%. Macron’s Ensemble alliance slumped to a dismal third with 20.76%, according to final results published Monday by France’s Interior Ministry.

“The result is probably better than feared (for markets) but not as good as the status three weeks ago pre-elections,” Mohit Kumar, Jefferies chief economist for Europe, wrote in a note Monday. “The immediate reaction is one of a relief rally.”

This is a developing story and will be updated.

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