Although the race between the top four candidates tightened near the end, Emmanuel Macron and Marine Le Pen made it to the second round. The markets seem to consider this good news, likely because it views Macron’s policies as fiscally more conservative than Le Pen’s.
In our view, the subsequent market rally – namely in the euro, broad European stocks and French bonds – does not look to be a major market event. We expect eurozone assets will have a small bounce on this outcome although markets were already pretty sanguine to begin with.
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April 25, 2017 | By Wouter Sturkenboom