The French election results are finally known to the world and the victory of Emmanuel Macron, although expected, has given more than one reason for celebration. The Euro has soared up to its highest ever level over a span of six months and breached the $1.10 mark. This is the first time this mark has been breached since Trump stepped into the Oval Office.
It was not the European Union alone that was impacted by the election results. In the U.S., stock futures held steady after the French people's mandate became clear, causing traders some relief. An unexpected electoral result could have spelled some tough times ahead in the futures market. While the Dow Jones Industrial, Nasdaq and S&P 500 futures dipped slightly compared to their opening positions, the overall trend was still positive. For the Dow, the gains came in over the last couple of trading hours and propped up the average to a 56-point higher close. Overall, there is no question that the markets have had a fortuitous escape of sorts because if the electoral results had gone any other way, there may have been dramatic downward changes in the market.
French stocks, understandably, also soared to a nine-year high with investor sentiment gaining strength after the win. Market experts believe that the CAC 40 will further strengthen and move on up if Macron's support appears to be growing. It must be noted that Macron is viewed as a pro-European President and this will give more impetus to European stocks because trade relations between France and its European Union allies may be expected to improve and progress. In particular, the banking sector is expected to benefit greatly from Macron's win and banking stocks are likely to witness gains.
Win by a large margin
The good news is that the markets may be expected to remain strong because Macron has won by a clear mandate. There is no question of any ambiguity anywhere with the new French President pulling in a whopping 65.31 percent of the total votes so far. This indicates that he will be able to establish a stable government too. Over 44 million votes have been factored in before this result has been announced. France has a total voting population of 47 million. The outcome was quite clear in the polls taken earlier where Macron had demonstrated his might already.