The French presidential election was no longer a big topic on the Paris stock exchange on Monday.

The confirmation of Emmanuel Macron in office had already been anticipated in advance, according to dealers.

His re-election was "no real surprise," said John Plassard, an analyst at private bank Mirabaud.

The markets had already priced in this election victory last week, says Jeffrey Halley from currency specialist Oanda.

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Niklas Zaboji

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For example, the share prices of the construction companies Vinci and Eiffage had already increased over the past week.

They were helped by the fact that, according to the polls, an election for the right-wing populist presidential candidate Marine Le Pen was becoming increasingly unlikely.

The latter had announced that it would terminate the concession contracts with the French motorway operators, to which the two construction groups belong, in the event of an election victory.

Traders then put their shares on the sell list.

In this respect, the shares of Vinci and Eiffage were also among the relative winners on Monday - Vinci in particular was one of the values ​​with the best price development with a plus of 1.3 percent in the French leading index CAC-40.

The index itself fell by up to 2.6 percent in the late morning, but then recovered noticeably - even slightly more than the German FAZ index or the index of the euro area, the Euro Stoxx 50, with a minus of around around 1.5 percent.

Measured against the alternative Le Pen, Macron's victory is good news for the euro, French government bond prices and French bank share prices, said Seema Shah from the investment company Principal Global Investors.

However, given the broader macroeconomic outlook since the war in Ukraine, there is little upside for these assets in the near term.

"In our opinion, there is a high probability that Europe will end this year in recession - and Macron's election victory will not change that," she said.

This fear of recession caused investors to flee again to safe investments.

Bonds in particular benefited from this, after their prices had fallen significantly in the face of inflationary pressure and the expectation of rising interest rates.

The yield on French government bonds with a term of ten years fell to 1.346 percent due to price gains.

Nonetheless, this decline was modest at 7 basis points and also less than that of the 10-year Bund at almost 9 basis points.

As a result, the interest rate differential between France and Germany rose slightly to 46.6 basis points.

"Basically a non-news"

DZ Bank analyst Christian Lenk referred to the basic scenario on the bond market, which assumed Macron would be re-elected.

That is why the risk premiums on French government bonds did not rise in advance and do not have to be corrected now.

In Lenk's view, the focus on the government bond markets in the euro zone is clearly on the rise in general interest rates in view of the expected turnaround in key interest rates by the European Central Bank (ECB).