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French stocks are surging ahead of the rest in Europe this morning as investors snap up the country’s assets after a first round presidential vote which is likely to put a pro-EU centrist in power next month.
France’s benchmark CAC 40 climbed over 4 cent at the start of Monday’s trading, while the country’s bond yields are rallying strongly and the euro is enjoying its best single day performance in 10 months.
Sunday’s vote saw Emmanuel Macron, an independent candidate in support of open borders, immigration and EU reform, gain the largest vote share at around 25 per cent. He will contest a final vote against the far-right Marine Le Pen in two weeks’ time. Polls indicate the former Socialist economy minister and ex-investment banker will emerge as clear victor with a majority around 60 per cent to become the country’s youngest every president.
Every constituent of the CAC 40 is in the green this morning, with banks leading the way and putting the index on course for its best day since 2015. Credit Agricole opened 10 per cent higher, followed by Societe Generale and BNP Paribas at 9 per cent. Europe’s broader bank index has jumped over 6 per cent.
France’s SBF 120 index – which tracks 120 of its most traded stocks – has hit its best level since before the financial crisis in 2007.
Investor demand for stocks has spilled over across Europe this morning. Germany’s Dax is up 2.5 per cent this morning, with the UK’s FTSE 100 gaining 1.8 per cent and Spain’s Ibex gaining over 3 per cent.
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