The markets rose after pro-business, pro-EU candidate Emmanuel Macron came top in the election and looked likely to sail through a run-off vote on 7 May and into the presidency.
The news eased post-Brexit fears on the future of the eurozone.
The French flagship CAC 40 share index reported an immediate relief rally by 4% on opening and was trading 4.4% higher by early afternoon – on track for its best one-day gain since August 2012.
Behind the headline gains there was a dramatic rotation towards economically sensitive shares, which have previously suffered volatility amid the Brexit fallout of the past year.
At the epicentre of the rallies was the French banking sector, which had already been creeping higher in the days before the election as polls inspired hopes for a pro-business choice for leader.
Banking giant BNP Paribas gained as much as 10.3% at one point during yesterday’s session and was trading 8.6% by the afternoon, while Société Générale was trading 10% higher.
The £372m Neptune European Opportunities fund run by Rob Burnett looked set for a major payday yesterday thanks to its 36% weighting in financials.
It has the current highest financials weighting in the IA Europe ex UK sector, according to data from FE Analytics.
For comparison, at the end of March the MSCI Europe ex UK index’s benchmark financials weighting was 22.5%.
