Over the weekend, there was a big sigh of relief as we saw France elect Macron as the new president. He defeated far-right figure Marine Le Pen in what many are billing as a rejection of the recent surge in populism. The final count showed that Macron secured more than 66% of the vote and, while the euro initially gained after victory was confirmed, it soon gave these up.
The market doesn’t seem convinced that Macron can deliver on all of his pre-election promises – the key is for him to form a government that allows him to implement the reforms France needs. Then there is the idea that the win is because he wasn’t Le Pen, rather than because he is Macron.
Today is set to be fairly quiet, with the market likely to continue digesting the news from the weekend. The European Central Bank’s President Mario Draghi is due to speak on Wednesday, while the main release to note is the release of first quarter (Q1) German Gross Domestic Product (GDP) figure on Friday. As the region’s largest nation, it will be closely watched and, given the positive data of late, we could see a positive number.