What Markets Should Conclude From France's Election

While French voters didn't shock markets by sending both presidential candidates from the far left and far right to the decisive second round in two weeks, investors did not get their dream lineup: A contest between Emmanuel Macron and Francois Fillon, the two most pro-market candidates.

Instead, the runoff between the National Front's Marine Le Pen and Macron -- the individual possibility to which the market assigned the highest single probability -- involves a clear battle between a commitment to shake the economic system and one to create change within the existing structure. And this first-round vote doesn’t signal, at least yet, the end of the anti-establishment phenomenon.