As the result of the first round of the elections in French released, the euro and stock markets started the week in a higher position. The euro increased to its highest level since November 2016. The French stock market index, the CAC 40, gained 4 percent in the early hours of the day. Investors are hopeful about the victory of the old investment banker Macron in the second round of the elections on 7th May. The threat of the rise of racist parties in the Europe had caused the global stock markets to lose weight due to the concerns of the investors for introvert economies and more aggressive politics in the global era.
Wall Street also started the day more positive. Futures markets indicated gains of about 1% for the main Dow Jones and S&P indexes.
According to the analysts victory of Macron has been the best scenario for the markets seeking for a stroke to move them. The expected policies of Le Penn about pulling France out of the European Union which means the collapse of the union and to sink euro was the nightmare of the investors. If French leaves from the European Union this will mean the end of the euro zone which may lead the Western Europe to economic and even political instability.
If Macron wins the second round, France will get the economic reforms which it needs to revive its fortunes. The economic rise of France will fire the euro zone. Cutting the corporate tax rates gradually from the current 33% to 25%, making France’s 35-hour work week more flexible, and slashing housing taxes for most people are among the promises of Macron. He has promised to cut public spending by €60 billion ($64 billion) a year, and plans an economic stimulus package worth €50 billion over five years.