Emmanuel Cau, head of Barclays European equity strategy, said: The French election results bring more questions than answers. A hung parliament was expected, but the market may worry about continued uncertainty and political deadlock, as well as the loose fiscal policy brought by the high vote share of left-wing parties. However, Macron's party performed better than expected in the polls, which means he can form a broad alliance, which the market may positively respond to. So, the game still has many possibilities.
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Barclays: Macron expected to form an alliance, market can respond positively to this
Emmanuel Cau, head of Barclays European equity strategy, said: The French election results bring more questions than answers. A hung parliament was expected, but the market may worry about continued uncertainty and political deadlock, as well as the loose fiscal policy brought by the high vote share of left-wing parties. However, Macron's party performed better than expected in the polls, which means he can form a broad alliance, which the market may positively respond to. So, the game still has many possibilities.