No political faction or alliance managed to win an absolute majority in the second round of French elections, which is expected to plunge France into political and economic chaos, according to the AP.

Although the final results? are expected late Sunday or early Monday morning, based on exit polls, the – now unpopular – Macron has lost control of parliament. Besides, shortly after the announcement of the exit polls, French Prime Minister Gabriel Attal said that on Monday morning he would submit his resignation to the French president.

The far-right National Rally, of Marine Le Pen, however, it greatly increased the number of seats that he had in the parliament, but he was far behind the estimates.

France now faces weeks of political negotiations which will determine who will be the country’s next prime minister. Macron, for his part, faces the prospect of leading the country alongside a prime minister who opposes most of his policies.

What economists and analysts said to Reuters about the exit poll

Simon Harvey, Head of Currency Analysis, Monex Europe: Based on the exit polls, it seems that the anti-far-right parties received a lot of support. For the markets, however, the result does not make any difference. The point is that there will be a big gap in terms of the ability of the French parliament to legislate. What we need to look at is the bond market. We may see a drop in prices. In fact, we are not expected to see any significant market reaction. If we look though, this means higher yields, a fall for the euro and a fall for French stocks. The real question is who will govern and who will be the next prime minister of the country. We are not expected to see much in the area of ​​fiscal policy, while we will go through a period where nothing significant can be done politically.

Holger Schmieding, Chief Economist, Berenberg: The result based on the exit polls is a big relief for Europe, as the Eurosceptic far-right appears to have fared less well than expected after all. The left alliance however, although first in the seats, is not even close to the absolute majority and Marine Le Pen is far behind and far from the majority. Thus, it will be difficult for France to form a government and the most likely scenario will be an attempt at an agreement between the left and the French president. This probably means that Macron will have to shift his positions a bit, while the left will have some influence on the country’s policies. This means that we are more likely to see changes to existing reforms than further reforms. However, the result is less negative than it could be. It could be a lot worse.

Jan von Gerich, Chief Market Analyst, Nordea: While the results, based on exit polls, still raise many questions, financial markets are likely to welcome them with some relief. The results prove that the more moderate forces managed to ally themselves in the second round against the extreme candidates, a fact that will also have an impact on the next presidential elections. That said, the left’s economic program is in many ways more problematic than the right’s, and while the left will not be able to govern alone, the outlook for France’s public finances is worsening. It therefore makes sense that somewhat higher risk premiums prevail on French assets.

Ben Laidler, Chief Strategy Officer, Bradesco BBI: There will obviously be some relief that the far right has retreated more than expected. On the other hand, however, we were faced with the unpleasant surprise of a left that fared much better than predicted. This will likely put an end to the rally in the euro and French stocks that we have seen in recent days. In essence, the outcome of the election creates more uncertainty for the markets. We must emphasize, however, that much of the rally in the euro has nothing to do with what was happening in France. It had more to do with the weakening of the dollar in the wake of clear signs that the US economy is slowing.