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Here's Why Bank Stocks (DB, BAC, GS) Soared Today

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Shares of the world’s biggest banks are soaring on Monday after the results of the French election eased concern about big financials with international exposure. The biggest gainer to start the week looks to be European giant Deutsche Bank (DB - Free Report) , which opened more than 10% higher today.

The important first round of France’s presidential election resulted in centrist candidate Emmanuel Macron and far-right leader Marine Le Pen advancing to the runoff. This was the desired outcome for many hesitant investors, as Macron holds a solid lead over Le Pen—and all of her associated uncertainty—in the latest head-to-head polls.

As the Eurozone continues to recover from the Brexit vote, a Macron victory is being welcomed from investors who view his presidency as a catalyst for a healthier European Union. While Macron desires a stronger partnership between Paris and Brussels, Le Pen has suggested that France reconsider its position in the bloc.

Deutsche Bank saw the biggest gain following the election, as investors now expect few changes for European banks, but others with Eurozone exposure, including Goldman Sachs (GS - Free Report) , Bank of America (BAC - Free Report) , and Citigroup (C - Free Report) , also popped on Monday.

The SPDR S&P Bank ETF (KBE - Free Report) , which currently sports a Zacks ETF Rank #1 (Strong Buy), was up more than 2.3% in morning trading hours.

The euro was also up following the results of the election, hitting a nearly six-month high against the dollar on Sunday and continuing to climb on Monday.

Investors should look for bank stocks to continue climbing this week, as President Trump is scheduled to reveal more details of his tax reform plan—a bill that is expected to ease operations for big banks—on Wednesday.

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