European banking stocks soared after the first round of French presidential election was won by centrist Emmanuel Macron. While it is still a long road ahead for Macron as he gets ready to challenge Marine Le Pen in the second round on May 7, European bank investors seem to have made up their mind.
The pan-European Euro Stoxx Banks Index rose above 6 percent in morning trade, hitting its highest level since December 2015 and putting it on course for the biggest one-day rise April 2016. The index is still trading about 4 percent higher led by Unicredit that is up 10 percent this morning. There is a splash of green across the board for all major European banks. But will this rally last?