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The main French markets have reacted coolly to the election of Emmanuel Macron as president of France, with early gains evaporating in later morning trading.

The euro touched a six-month high overnight before falling back to $1.0940 against the dollar, down 0.45 per cent on the day so far.

French stock market index the CAC-40 was down 1 per cent at 5377.85 at pixel time, after a brief early spike to its highest level since 2008.

French government bonds were a little stronger, however, with the yield on French 10-year debt down 0.035 percentage points at 0.8 per cent. (Yields fall when prices rise.)

ING Research said markets were “sell[ing] the fact” as Macron’s victory was “widely expected”. However in the longer term a rally was likely, ING said:

French political risk had been one of the key factors weighing on the euro this year and its removal could trigger a euro recovery.

Copyright The Financial Times Limited 2018. All rights reserved.

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