5 Stocks To Buy As Macron's Win Boosts Eurozone Prospects

At one point only a possibility, Emmanuel Macron’s victory in the French presidential election has brought cheer to the Eurozone as a whole. With the centrist politician at the helm, the departure of a major power from the economic bloc looks improbable at the moment and the euro project seems secure.

Instead, investors can now focus on the economic success of the currency bloc, which has been going from strength to strength recently. Data on growth and manufacturing released at the beginning of this month lends weight to such an argument. Investing in stocks from the Eurozone at this time could boost your profits substantially.

Macron’s Win Ends “Frexit” Fears

Ultimately, the second round of France’s presidential elections was a tame affair. Macron easily defeated his opponent, right wing Front National candidate Marine Le Pen, by cornering 66% of the votes.

This is a vastly different outcome from the first round of elections when Macron secured 23.75% of the vote, while Le Pen won 21.53%. This amounted to a mere 20 point lead for Macron, but even this development sent the benchmark CAC 40 to a 2-year high. 

Even then, the enthusiasm among market watchers was both palpable and understandable. While Macron had made it clear that he wants to keep France in the EU, Le Pen was committed to hold a referendum in which the people would decide whether to leave or stay in EU, raising the specter of a ‘Frexit.’

But this departure did not have as much as an impact as anticipated. This is possibly because Britain may not have been as central to the EU project as was earlier believed. But a “Frexit” would certainly have had a major impact, especially because France is also a member of the Eurozone. In fact, France’s departure from the EU would have placed the Euro in grave peril.

Eurozone Economy Strengthens

With the French elections out of the way, investors can now focus on Eurozone’s economic success. Of course, such fundamental strength was not gained instantly but only through steady improvements. For instance, the region’s manufacturing PMI has now increased for 46 consecutive months, accelerating notably in recent times. In contrast, the U.S. ISM Manufacturing index suffered a decline in April, as did China’s Caixin Manufacturing PMI.

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