Macron win in France election helps stocks and euro strengthen

The euro has made strides while stock markets are surging following the French presidential election result - seen as a boost for stability in Europe.

Pro-EU Emmanuel Macron's victory over far-right challenger Marine Le Pen was largely expected by financial markets though a relief rally, of sorts, was evident given recent electoral shocks including the Brexit vote.

The first reaction to his comfortable win came in Asia where the euro rose half a cent, above $1.10. It was also up against sterling and many other major currencies.

Stock markets also gained - with analysts pointing to strong US job creation numbers last Friday helping Japan's Nikkei to a 17-month high.

In Europe, the gains were more muted as the election result was largely priced in.

France's CAC 40 was 0.3% higher in early trading while the FTSE 100 was just fractionally up. Values in Paris later slipped, with traders citing some profit-taking.

Concerns remain that Macron is yet to secure a power base in Parliament, with elections due next month in a country that remains split on the path ahead.

:: The stakes could not be higher for Macron

Ms Len Pen - who is anti-euro and could have pushed to take France out of the EU alongside Britain - secured a third of the presidential vote.

Chief market analyst at ThinkMarkets UK, Naeem Aslam, said: "Risk of failure in delivering higher growth and lower unemployment is going to be the focal point and it is in this manner that all eyes will now turn towards the June parliamentary elections.

"Macron needs to make sure that he has a strong hand in the parliament which will help him to make swift movements."

Neil Wilson, senior market analyst at ETX Capital, said the election - coupled with better growth and inflation data for the eurozone - may nudge the European Central Bank closer to tightening monetary policy.

"What this election doesn't change is the kind of fundamental stuff that affects the French economy," he said.

"And one-third of French people would prefer Le Pen. Populism - and the risks it poses to markets - has not been vanquished by this election."