Investors cautiously welcomed Nicolas Sarkozy’s election as France’s president on Monday, as economists focused on whether his thumping victory would translate into a majority in June’s parliamentary elections, providing a clear mandate for reform.

Economists greeted Mr Sarkozy’s election with enthusiasm, in anticipation of tax cuts, labour market reform and debt-reduction. But the CAC-40 share index fell slightly to 6,064.02, after hitting a fresh six-year high shortly after markets opened.