French assets surged after a win for centrist Emmanuel Macron and nationalist Marine Le Pen in the first round of the nation’s presidential election provided a market-friendly outcome.
The CAC 40 index of shares jumped to its highest level since 2008, boosted by gains in the country’s banks, while the yield spread between French 10-year securities and benchmark German bunds narrowed to the lowest since January. A place for Macron in the second round avoids investors’ nightmare scenario of a contest between the anti-euro Le Pen and the Communist-backed Jean-Luc Melenchon.
