PAUL LAMBERT, FUND MANAGER AND HEAD OF CURRENCY MANAGEMENT AT INSIGHT INVESTMENT MANAGEMENT
Centrist Emmanuel Macron and far-right leader Marine Le Pen are set to face each other in a May 7 runoff for the French presidency after coming first and second in Sunday's first round of voting, early projections indicated.
Below are reactions from a selection of economists, analysts and fund managers.
PAUL LAMBERT, FUND MANAGER AND HEAD OF CURRENCY MANAGEMENT AT INSIGHT INVESTMENT MANAGEMENT
"All the polling that we are seeing would suggest that in the second round it would be very difficult for Le Pen to make major further gains, while Macron should pick up significant further votes. I think people will be fairly confident that Macron will win in the second round and the market will be relieved by that. The euro will benefit from the perceived decline in the break-up risk in the euro area.
It was expected that Macron would get through so I'm not sure there will be significant further (euro) moves tomorrow. The euro might see a little bit more strength over the coming days and a tightening of French bond spreads against Bunds, generally 'risk-on' currencies will probably do quite well, peripheral bond yields come down and probably upside in European stocks."
RICHARD MCGUIRE, HEAD OF RATES STRATEGY AT RABOBANK
"On the face of it, the results are risk-positive. The assumption now is that centrist voters will rally around Macron, denying Le Pen the presidency and hence this will effectively be a pro-establishment, pro-European result which will be positive for risk appetite on Monday morning.
We are likely to see a notable tightening of European sovereign spreads and this would also be positive for the euro and stocks.
But the staggering of the election results this year means the exit polls have to be taken with a degree of caution. The exit polls for Brexit and Trump were wrong so only time will tell."
TIMOTHY ASH, ECONOMIST AT BLUEBAY ASSET MANAGEMENT
"Despite all the hype about the rise of populism, 60 percent of voters went for mainstream candidates. With the Afd in the wane in Germany, it seems like Trump marked the turning point for electorates playing the protest vote. In an uncertain world they rather go for what they know best and want to take fewer risks. That could be the bigger story for 2017 - seen in Dutch elections, maybe UK and very likely Germany." (Compiled by Jemima Kelly; editing by Susan Thomas)
(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)
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