Macron’s victory may increase appetite for European equities

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Everything went as expected as investor’s preferred candidate Emmanuel Macron won the French elections against far-rightist Marine Le Pen by more than 30 percentage points. Last night, the euro at times surpassed the $ 1.10 level (although it lost this level in the Asian markets this morning).

European stocks are expected to receive a wave of new investment. In fact, since Macron’s victory in the first round of the polls in late April, money begin to return to the eurozone: funds have enjoyed six straight weeks of inflows, their longest positive streak in 18 months. European bond funds pulled in $1.4bn last week, the most since early January. Last week France’s blue-chip CAC 40 hit its highest level in nine years on hopes of a Macron victory.