When Emmanuel Macron topped the first round of voting in the French presidential election two weeks ago, French stocks soared to near-decade highs. On Monday, the reaction to his victory in the runoff was decidedly subdued: investors had been fully expecting it and seem wary of the difficulties he’ll face reforming a divided country.
In midday trading, the CAC 40 index of leading French shares was down one percent at 5,379. Other indexes across Europe were also trading lower, while the euro, which briefly hit a six-month high above $1.10 overnight, was down 0.5 percent at $1.0942.
In market parlance, it’s a clear case of buying the rumour and selling the fact.
“With markets having rallied throughout last week in expectation of a Macron win, there was little upside left for equities and the euro,” said Chris Beauchamp, chief market analyst at IG. Click here to read more.