As French voters head to the polls, investors are grappling with a remote yet not implausible possibility — victory for Marine Le Pen.
The anti-euro leader of the far-right National Front is unlikely to triumph in the two-round presidential vote that kicks off Sunday. But few observers discount a win for Ms. Le Pen entirely, and analysts say it could pose a major risk to European equities and spur concerns over the future of the eurozone.
“It would be seismic, bigger than Trump or Brexit for markets, if Le Pen got into office and called into question the euro itself,” said Paul Griffiths, chief investment officer of fixed income and multiasset at First State Investments.
Sunday’s vote will determine which two candidates will face off in May’s runoff, unless a candidate garners more than 50% of the vote. The latest polls point to a tight four-way race.
In her campaign, Ms. Le Pen has vowed to take France out of the euro and bring back the franc, which could cause the country to default on its debt while questioning the viability of weaker eurozone economies such as Spain and Italy.
Sunday’s vote will determine which two candidates will face off in May’s runoff, unless a candidate garners more than 50% of the vote. The latest polls point to a tight four-way race.
In her campaign, Ms. Le Pen has vowed to take France out of the euro and bring back the franc, which could cause the country to default on its debt while questioning the viability of weaker eurozone economies such as Spain and Italy.
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