Stock Futures soar after French Elections | Financial Buzz

Stock Futures soar after French Elections

The French elections have given a good reason for the market watchers to be excited and happy at the same time. It is not just that the Euro has posted its six-month high when compared with the dollar, Asian stocks too jumped, and stock futures in the U.S. were at record levels for a brief period. In all, the market has reacted positively to the news of Emmanuel Macron's win by popular mandate.

A major event for the market

The French elections have been deemed a big event for the markets and this applies to markets across the world and not just France, say experts. This is one of the reasons why the elections have caused the U.S. futures to move up. The S&P 500 futures mini showed a marginal 0.2 % gain and touched its record high early in the day although it later settled back down; experts say that the French elections is one sound reason why this gain has happened. The elections were being looked at as a big risk and with them now done, the markets are settling down.

Pro-European President builds confidence in the market 

In particular, the futures market is gaining strength because market players see Macron's win as good news for France's industrial development and also for trading relations with the rest of the European union. It may be noted that Macron's closest competitor for the presidential seat, Le Pen, made no bones about her hard-line stance against the European Union. She had repeatedly pushed for France exiting the EU and global markets were apprehensive of this becoming a reality if Le Pen won the elections. Macron's rise to power assuages these fears and lays the ground for a more stable Eurozone as well as better global market conditions resulting from a more strengthened Eurozone.

The fact that Macron is also viewed as a financial expert, his stint as an investment banker with Rothschild is giving the markets more reason to celebrate his win with gains. With his win, prospects for the global stock market are now looking up considerably and this is being reflected in stock futures as well as stocks. The business-friendly candidate has banking sectors cheering, in particular, with expectations of a more financially stable environment being foremost in terms of what the bankers hope to see in the near future.

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