“The French elections gave the markets a sigh of relief,” Chuck Butler, managing director with EverBank Global Markets, said in a note, according to CNN Money. “A lot of the risks that were associated with the French election have been put on the back burner.”
Macron and Le Pen will go head-to-head in the final round May 7. A poll late Sunday from Ipsos/Sopra Steria indicated that Macron would likely win the runoff by 62% to 38%, further supporting the relief trade as investors anticipate a return to the status quo.
The results are seen as a turn against calls for scrapping the euro currency and breaking down the European Union, a scenario widely feared as a big destabilizer for the euro and trading bloc.
France ETF traders have been worried of a Le Pen win as the fund experienced a one-day outflow of $57.4 million, its largest one-day redemption since December 2013. On the other hand, about $37.2 million flowed into the ETF on Monday, according to FactSet data.
For more information on the French markets, visit our France category.