Investments in France are not likely to be severely affected by the outcome of the closely-fought presidential elections in the country, it has been claimed by a financing analyst.

Following the completion of the first electoral round, centre-right candidate Nicolas Sarkozy has emerged as slight favourite after receiving a greater share of the vote than socialist counterpart Segolene Royal.

Commenting on the situation, Pater Jarvis, co-manager of the FC European Dynamic Fund, suggested that Mr Sarkozy may be marginally more popular among people with investments in the Gallic country as well.

Although neither Nicolas Sarkozy or Segolene Royal has emerged as a clear favourite for investors , a win by Sarkozy may lead to a small relief rally in domestic stocks , he said.

Explaining this, Mr Jarvis pointed out that the centre-right politician has pledged to tackle the 35-hour week while his socialist counterpart plans to extend it to small and medium-sized businesses , which some investors fear could impinge upon economic growth.

The pair are vying to replace presidential incumbent Jacques Chirac who plans to step down after 12 years in office.