Emmanuel Macron's historic majority sends shares rebounding as French President pledges economic reforms

The Stoxx Europe 600 Index advanced 0.9 per cent on Monday, its biggest jump since late April

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The Independent Online

European stocks rebounded from a two-week decline, with lenders leading gains as bond yields climbed.

The Stoxx Europe 600 Index advanced 0.9 per cent on Monday, its biggest jump since late April.

French stocks were the best performers in Western Europe after President Emmanuel Macron’s government claimed a historic majority in the country’s legislature. 

“After a central-bank bonanza last week, this week has an altogether quieter feel to it, though politics could well continue to play a part, in the absence of any meaningful economic data,” Michael Hewson, an analyst at CMC Markets said.

The UK Government is on the backfoot as it begins Brexit negotiations with the European Union, after Prime Minister Theresa May’s attempt to strengthen her hand by calling an election backfired. The CAC 40 climbed 0.9 per cent after Macron’s party and its allies won the biggest majority in 15 years. The French benchmark is up 9.4 percent this year, outperforming the broader European gauge.

The retail sector, particularly grocers, which were sent into a tailspin on Friday following Amazon’s surprise $13.7bn (£10.7bn) deal to buy Whole Foods, bounced bank, partly on hopes of more deal activity in the sector.

The regional retail index, which suffered its worst week in 16 months last week, rose 0.8 percent with Ocado up 11 per cent.

Exane upgraded Ocado to “outperform” on hopes that partnerships, if not a takeout, were more likely.

Bloomberg

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