European stocks rally led by CAC 40
Following the first round of French presidential election, major equity indexes in Europe recorded substantial gains as investors speculated that pro-growth centrist candidate Emmanuel Macron would easily beat the anti-EU candidate Marine Le Pen in the second round on May 7.
- French elections: Big win for Macron, and for French pollsters – TDS
- IFOP poll: Macron 60% vs. Le Pen 40%
Fueled by bank shares, the French CAC 40 Index gained 209.65 points, or 4.15%, on the day. “This confirms the ‘central scenario’ that was mostly priced in already, so I don’t expect euphoria on the markets. Banking stocks could outperform after their recent weakness,” Andrea Tueni, a trader at Saxo Bank, told Bloomberg following the election outcome.
The Euro Stoxx Banks Index leaped 6.7% and pushed the Euro Stoxx 2.11% higher. Germany’s DAX Index closed at 12.451,25, adding 3.34%, or 402,68 points. UK's FTSE 100 also rose 2.15% on Monday.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
