French Election Results Help the European Stocks to Gain
by Latisha Liming
The first round of French Presidential election was announced and the results favor the centralist candidate. Emmanuel Macron beat the far right Marine le Pen in the first round of the French election, gaining 23.9% of the vote. Le Pen was able to gain only 21.4% of the votes. The European stocks have emerged as a winner after the results were announced. The centralist candidate remains the favorite one and this means that France won’t be leaving EU anytime soon.
The CAC 40 index of France rose to 2,262.50 from 5,081 in just a single day. This is the highest value of the index in the past nine years. DAX index of Germany also gained 330 points to reach 12,379.50, which is again an all-time high. The Euro Stoxx 50 gained 3% to become 3,556.70.
The bank stocks of the Euro zone have also emerged as winners. The EUR USD pair is also trading at a higher levels and Euro shows a strong presence in the forex market. Experts predict that the EUR USD pair will reach 1.12, which was common before the US presidential election.
Market experts weren’t surprised by the results as Le Pen and Macron were expected to face each other in the second round. Macron, becoming the crowd favorite is good for the Euro because he is a safer candidate. The election of Macron would reduce uncertainty in the European Union. However, Macron lacks political support from allies which would make it extremely difficult for him to bring about economic reforms.
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