North American stock markets surged in a relief rally Monday following the first round of France’s presidential election over the weekend.
Emmanuel Macron, seen as pro-business and friendly to the concept of the European Union, won the most votes Sunday and is seen as the leading contender in a run-off election where he will face anti-EU opponent Marine Le Pen in two weeks.
The S&P/TSX composite index added 97.98 points to 15,712.46, with the financials sector leading the way, up 1.52%. The base metals sector of the TSX was up 0.90%, while industrials stocks were up 0.88%.
In New York, the Dow Jones industrial average gained 216.13 points to 20,763.89, the S&P 500 index climbed 25.46 points to 2,374.15 and the Nasdaq composite index was up 73.30 points to 5,983.82, a new record.
“After Brexit last summer and the U.S. presidential election in the fall, I think markets have become a little more accustomed to bracing ahead of big elections, given the potential for a surprise outcome,” said Craig Fehr, a Canadian markets strategist at Edward Jones in St. Louis.
“What we got in the French election over the weekend was what the market was hoping for, which was less of a surprise and results that were a bit more consistent with the polls heading in, so we’re seeing markets rally in relief.”
Meanwhile, the oil-sensitive loonie lost 0.04 of a U.S. cent to US74.01¢.
In commodities, the June crude oil contract was down US39¢ at US$49.23 per barrel, the June natural gas contract gave back US3¢ at US$3.16 per mmBTU and the May copper contract was up US2¢ at US$2.55 a pound.
Gold, perceived as a safe haven in times of uncertainty, declined as investors turned their attention to riskier assets such as stocks, said Fehr.
The June gold contract declined $11.60 at US$1,277.50 an ounce while the global gold sector of the TSX retreated 2.20%.