Yesterday's French presidential election could affect the iShares MSCI France (NYSEARCA:EWQ) ETF. The two favored candidates are Nicolas Sarkozy, main center-right, and Segolene Royal, the Socialist.
Both candidates take approaches that are on different sides of the market spectrum, says Carl Delfeld of ETFXRAY.com.. The victory of Mr. Sarkozy could begin a market rally whereas Ms.Royal may lead to market uncertainty. EWQ is up 8.5% this year, despite France's slow growth, high tax and high unemployment rate. Ten of the 50 largest companies in Europe are headquartered in France, but they rely on the global economy, not France, for profits.
EWQ 1-yr chart