After a campaign trail which tore the status quo apart, French voters face a paramount election with starkly different candidates to choose from.
On Sunday, the 7th of May, voters will decide between a populist who has captured the votes of many rich democrats or a political novice promising to change the fundamentals of French governing.
In one corner lies Marine Le Pen, a far-right Eurosceptic, who has threatened to disembody the European Union. The National Front leader has vowed to emulate Britain and divorce its trading partner, replacing the EU with trade tariffs and immigration barriers.
In the other corner there’s Emmanuel Macron, a pro-euro, ex-banker, and a furious advocate of globalisation and free trade. The En Marche! founder has named the EU as the remedy for population control and argues that the bloc is key to fighting terrorism.
Donald Trump’s surprise election and Britain’s shock rejection of its trading bloc is still fresh on European investor’s minds. Nationalism has notoriously caused a stir in markets. This time, it’s the euro and European equities that will bear the brunt of the election results.
According to the latest polls, Macron has 60% of the vote, compared to Le Pen’s 39.9%.
On the last day of the campaign trail, France’s stock index, the CAC 40 is trading 0.06% lower at €5332. The euro is down 0.075% against the dollar. However, the French elections may not be to blame for the subdued currency and equity markets.
Crude oil slumped to a low of $43.80 early Friday morning. Meanwhile, Brent oil shed over 3% of its value, now at $48.68. The decline in oil prices caused a sharp sell-off of commodity-linked assets.