Investors across the globe got what they expected — and what many of them hoped for — after centrist Emmanuel Macron defeated far-right candidate Marine Le Pen in the second round of the French election.
"We took one of the biggest risk events of the year off the table," said Tom Hainlin, global investment strategist at Ascent Private Capital Management. "I think people will now be focusing on the fundamentals — which have been good — and the European Central Bank, which continues to be accomodative."
Macron was projected to get 65.1 percent of the votes and Le Pen just 34.9 percent, according to exit polling firm Ipsos. Most other polls had Macron defeating Le Pen by a similar margin.
The euro climbed to its highest level in six months, breaking above $1.10 for the first time since the U.S. presidential election.
Euro/dollar since April 23
The common currency jumped above $1.09 after the first round of France's vote last month and held around that level as most market participants expected Macron — the pro-European candidate — to win. A Le Pen victory would have raised questions about France's future in the European Union and the euro zone.
"The euro's appreciation is probably largely done," Komal Sri-Kumar, president of Sri-Kumar Global Strategies, told CNBC via email. "This is because investors' attention will now shift focus on if, and how, President Macron will be able to implement reforms."
This is the second bullet global markets have dodged from European elections. Earlier this year, the Netherlands far-right party — led by Geert Wilders — came in second place in Dutch elections, a disappointment considering the party led most polls leading up to the election.
U.S. President Donald Trump congratulated Macron on the victory in a Twitter post.
"Despite the low turnout, Macron's victory is an unambiguous win for the French center, for Europe, and consequently for global markets," said Quincy Krosby, chief market strategist at Prudential Financial, in a note. "We should initially expect a 'risk on' market before investors revert to fundamentals."