French exit polls have predicted President Emmanuel Macron won a large majority in parliament tonight, giving the former banker a clear mandate to reform the French economy with far-reaching, pro-business policies.
Macron's candidates and allies won as many as 360 seats in the 577-seat National Assembly, according to polls by Kantar-Sofres and Ipsos/Sopra Steria. That's well above the 289 seats needed for control, but lower than initially expected after a landslide in last week's first round of voting.
However, a poll by Elabe projected a wider majority of 395 to 425 seats.
The victory means Macron will have incredible leeway in pushing his domestic agenda, said Elliot Hentov, head of policy and research at State Street Global Advisors.
"Markets should therefore expect that labour reforms should pass, as should changes to the tax code and pension system. The impact could be structural and two-fold, both in boosting French investment and productivity gains as well as in setting the stage for more audacious reforms of the Eurozone," Hentov said.
The polls projected the Republicans and its allies would be the main opposition force with between 97 and 133 seats.
The Socialist Party, which was previously in power, was delivered a painful blow as pollsters predicted they will win between just 29 and 49 seats. First secretary of the Socialist party, Jean-Christophe Cambadelis, resigned today, saying En Marche's triumph was undeniable. "Tonight, the collapse of the Socialist party is beyond doubt," he said, according to Reuters.
Marine Le Pen's National Front is set to win between four and eight seats, according to polls. However, Le Pen lost a key aid, chief strategist Florian Philippot, who lost his seat to an En March candidate.
Voters turned out in record low numbers just a month after Macron and his newly formed centrist party, En Marche, swept to victory. Turnout was projected at around 42 per cent by the Interior Ministry.