It's Almost Election Day in France...Again

The finale of the French presidential election is scheduled for Sunday with centrist Emmanuel Macron and far-right candidate Marie Le Pen facing off. Predictably, that has traders keeping tabs on the iShares MSCI France ETF (NYSEArca: EWQ), the largest France exchange traded fund trading in the U.S.

France, the Eurozone’s second-largest economy behind Germany, is a key component in diversified Europe ETFs. In dedicated Eurozone ETFs, France is usually the largest or second-largest country allocation. In diversified Europe ETFs that hold stocks from nations outside the Eurozone, France is usually among the three or four largest country allocations.

Polls widely show Macron ahead of Le Pen, a result markets appear to favor. 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.

“The second round of the French presidential election will be held this Sunday, with centrist candidate Emmanuel Macron and his far-right opponent Marine Le Pen slated to hold a televised debate later today. The results of the initial round of voting in late April sparked a global relief rally in stocks, as the growing fear surrounding the event was unwound. There still seems to be plenty of skepticism surrounding the final result, too, based on the recent options activity in the iShares MSCI France ETF (EWQ) — an exchange-traded fund that tracks mid- and large-cap stocks in France,” according to Schaeffer’s Investment Research.