European equity futures pop and drop after Macron win

Major European index futures - DAX and FTSE 100 -  opened higher following Macron’s victory, only to surrender gains and trade negative in what appears to be a “sell the fact” move.

Macron win was priced-in

European stock futures pulled in $883 million in the week ended May 3, data released from Reuters Lipper showed on Friday. As of April 26, the inflows in European equity funds were $2.4 billion; their strongest in more than a year.

The fact that business friendly Macron was leading the polls by a big margin saw yield hungry investors pour money into the European equities. Thus, Stoxx 50 index hit the 20-month high last week.

The data and market action clearly suggest that a Macron win was priced-in already. Consequently, the stock futures are witnessing a ‘sell the fact’ trade this Monday morning in Asia.

FTSE 100 futures opened 0.40% higher following Macron win and were last seen trading 0.05% lower on the day. DAX futures are down 43 points or 0.34%.