Don't Laugh, But France Really Might Reform This Time

There are two French election celebrations happening today in the business world. One is cheering the short-term relief for Europe; the other the prospect of long-term reform in France. These sunny views will be tested politically over the next few months, but there's reason for hope. "Macronomics" is no revolution, but investors should give it a chance.

Monday's market rally is all about "Le Phew," as my colleague Marcus Ashworth notes. The euro zone, barring any big shocks, has dodged a populist bullet that threatened political and financial stability. Marine Le Pen's vote share was lower than in recent regional elections. While much could change in the two weeks until the second round, Macron's the man for now. That's why bank shares across Europe are soaring, with top Italian, German and French banks up almost 10 percent.