French stocks, euro surge after first round of French presidential vote

The French stock exchange and the euro surged after French voters selected centrist newcomer Emanuel Macron and the Front National’s Marine Le Pen to fight for the French presidency when the second round of voting is held on May 7.

It was the first time that neither the Socialist nor Republican parties had made it to the second round since 1958. While that represents a major change in the political landscape, European leaders and markets were reassured by the performance of Macron, who is almost certain to defeat Le Pen on May 7.

Macron polled 23.8 percent to Le Pen’s 21.5 percent, Francois Fillon, an early favorite, had 19.9 percent, followed by the left-winger Jean-Luc Melenchon with 19.6 per cent and the Socialist Party’s Benoit Haman with 6.4 percent. There were also six other candidates.

As the results emerged all the main contenders, except Melenchon, urged their supporters to back Macron against Le Pen. Opinion polls gave Macron at least a 24-point lead over Le Pen.

Macron could be the youngest president in the 59-year history of the French Fifth Republic. The 39-year old formed the En Marche party one year ago and it has no deputies in French Parliament. If Macron becomes president, his next battle will be to get enough deputies elected to Parliament in June to help him govern, although his party is well-placed to lead a coalition.

The choice for French voters is quite clear. Le Pen seeks to leave international alliances, such as the European Union and NATO, and looks for domestic solutions to terrorism and unemployment, such as restricting migration and protecting French industry from competition.

Macron is an internationalist who sees strength in alliances and wantFrench borders kept open to trade and migration. Both candidates will struggle to identify themselves as the most patriotic and French of the two.

The markets got the second round they wanted and the euro hit a 5-month high at $1.086. The CAC 40 index of France’s leading companies rose by 4 per cent on Monday morning.

Le Pen’s result is a qualified victory for the Front National. She did much better than in the 2012 presidential elections and far better than her father when he came second in 2002.

If the presidency is beyond her, Le Pen and her party will aim to significantly increase their representation in Parliament in June. The Front National has only two deputies out of 577 in Parliament.