Europe midday: French stocks buoyed by Macron lead in latest poll

French stocks outperformed their European peers on Tuesday following a convincing performance by independent centrist Emmanuel Macron in the first televised debate for the French presidential election.

At midday, the benchmark Stoxx Europe 600 index was up 0.22% to 378.50, Germany’s DAX rose 0.2% to 12,076.81 and France’s CAX was 0.49% higher at 5,036.53.

Investors grew slightly more confident that French voters will rebuff far-right Marine Le Pen in the presidential election after Macron’s performance on Monday’s television debate with the five main candidates.

An opinion poll by Elabe after the debate showed that 29% of respondents thought Macron was the most convincing candidate. Far-left Jean-Luc Mélenchon came in second place with 20%, while centre-right candidate François Fillon, who is embroiled in a family expenses scandal, and Le Pen both at 19%.

The debate propelled the euro to six weeks highs against the dollar, while on Tuesday the currency was was up 0.66% versus the dollar to 1.0810, and down against the pound to 0.86739.

It may be possible that the criticisms to similar Trump policies might penalise Le Pen in the presidential race, as she brought up a Trump-like 35% tax suggestion on some imported products, said Ipek Ozkardeskaya, senior market analyst at London Capital Markets.

Ozkardeskaya said that moving into the first round of the French election on 23 April and the evolution of the French political platform will remain the major driver of the euro.

“The polls following the debate will be closely monitored and could cause significant price action in the euro; the volatility is expected to be two-sided. Any disappointment on the Macron camp could pull the euro lower.”

Meanwhile, Brent crude was up 0.8% to $52.04 a barrel and West Texas Intermediate was 0.79% higher at $49.30.

In corporate news, Deutsche Bank fell 7.06% as it went ex-rights and following news that the German lender will be facing fines by the US Federal Reserve and New York's Department of Financial Services for its currency trades.

Dutch chemicals company AzkoNobel rose 3.75% after Bloomberg reported that US rival PPG Industries was preparing another takeover bid after it failed its earlier attempt.

France's Altice was up 1.16% after it bought video online advertising company Teads for about €285m.