# State Street Comments on French General Election Results
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-05-10
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: French Election Results: Experts' Views on Market
Meta Description: State Street Global Markets and State Street Global Advisors assess how Emmanuel Macron's victory will influence European politics and financial markets.
URL: https://financedigest.com/state-street-comments-on-french-general-election-resultshtml

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In reaction to the French general election results, Timothy Graf, head of macro strategy EMEA at State Street Global Markets, and Bill Street, head of investments for EMEA at State Street Global Advisors, offer their views.

**Graf commented**, “With Emmanuel Macron’s widely expected victory now confirmed markets can relax about European politics for at least a few weeks. It is supportive short-term news for risky assets and the euro, but given Macron’s consistent lead in second round polls throughout the campaign, gains in each are likely to be more muted than those seen two weeks ago. We [expect the focus to now shift to how successful Macron’s political movement, and new party, EnMarche!, will poll ahead of June’s parliamentary elections, and how strong a coalition of support he can expect as the leader](https://www.financedigest.com/what-is-expected-of-leaders-in-the-age-of-automation.html "What is expected of leaders in the age of automation?") of what is likely to be a minority party.”

**Street commented**, “Emmanuel Macron’s victory gives markets a much deserved breather from [European politics](https://www.financedigest.com/european-shares-rebound-with-focus-on-italian-politics-earnings.html "European shares rebound with focus on Italian politics, earnings"). This result, combined with last week’s preliminary Greek debt agreement, will be enough to support a short-term relief rally. Looking forward, Macron only offers upside surprises. In a do-nothing scenario, we have the status quo of political paralysis, but with a favourable external environment and [steady growth](https://www.financedigest.com/recent-research-in-vitro-toxicology-testing-market-to-witness-steady-growth-at-5-6-cagr-by-2017-to-2022.html "Recent Research: In Vitro Toxicology Testing Market To Witness Steady Growth At 5.6% CAGR By 2017 to 2022") improvement. In the goldilocks scenario, Macron gets a working parliament and builds a [partnership with Germany to launch](https://www.financedigest.com/adverty-launches-industry-first-streaming-video-technology-for-in-play-ads-in-partnership-with-seenthis.html "Adverty launches industry-first streaming video technology for In-Play™ ads in partnership with SeenThis") meaningful reforms. That would deliver a substantial [boost to markets](https://www.financedigest.com/structured-cabling-market-growth-of-it-telecommunication-industry-to-boost-market.html "Structured Cabling Market – Growth of IT & telecommunication industry to boost market") by year-end, which is currently not priced in. In either scenario we could see [renewed market pricing for accelerated European Central Bank](https://www.financedigest.com/major-central-banks-renew-rate-hike-push-in-may.html "Major central banks renew rate hike push in May") policy normalisation, especially if the data continues to impress.”


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