Stocks in France and exchanges in European markets opened with rosy note on Monday after pro-market and Europe stance Emmanuel Macron’s win in France’ first round offered a relief to investors who had feared radical candidates could win power.
In Paris, the benchmark index CAC 40 rose sharply by 4.53 percent in early trading to stand at 5,228 points, the index best performance since 2007. Heavyweight banking sector jumped by 6.15 percent with France’s leading banks BNP Paribas, Cerdit Agricole and Societe Generale surged by 8.6 percent, 8.89 percent and 9.58 percent respectively.
Euphoria triggered by a victory of an advocate of strong eurozone, sent stocks of London’s FTSE up by 1.86 percent while Frankfurt transactions were also lifted by optimistic French election outcome. They were high by 2.88 percent The European index, the EuroStoxx 50 was rose by 2.03 percent.
“Investors are reassured by the very likely prospect of seeing Mr. Macron at the Elysee. It lifts the risk of having an extremist party hostile to the European construction and which would have had very negative consequences on the future of the euro area,” Jean-Marie Mercadal, chief operating officer at OFI AM wrote in a note. Latest results issued by the Interior Ministry earlier on Monday showed Macron dominating the vote with 23.75 percent against far-rightist Marine Le Pen’s 21.53 percent. Both will face off in a run-off in two weeks. Pollsters predicted the former economy minister to comfortably defeat the rival.