The French Election and the Markets: Round 1

The initial rally in markets after the first round of France’s presidential election illustrates investors’ confidence that a centrist government will ultimately emerge, according to Goldman Sachs Research’s Chief European Economist Huw Pill, who’s now turning his attention to legislative elections in June. With independent Emmanuel Macron favored to win the decisive second round over Front National candidate Marine Le Pen on May 7, the makeup of the National Assembly will be critical for him to implement his economic liberalization and reform agenda. 

The novelty of [Macron’s] political movement and the lack of an institutional party basis for that government is likely to lead to the creation and his reliance on a coalition.

- Huw Pill

Huw Pill

Chief European Economist, Goldman Sachs Research