BNP Paribas (BNP.MU)

France's snap election: Could Europe see huge policy shifts?

European markets (^FTSE, ^GDAXI, ^FCHI, FTSEMIB.MI, ^IBEX) saw slight pullbacks in Monday's session after French President Emmanuel Macron called for a snap election in an attempt to offset the rise of the far-right National Rally party throughout Europe. While European stock reactions were surprisingly "muted", TPW Advisory Founder Jay Pelosky doesn't see major policy shifts happening in European nations despite frightening headlines, discussing where the continent broadly stands economically in the coming years. "Europe obviously has an opportunity because it's more integrated than any of the other regions. Yet it needs to move further and faster on things like joint funding of defense, on moving forward with AI — not just being content to be a regulator, but it needs to be in the game of AI and issues like that. So it's an opportunity for Europe," Pelosky tells Yahoo Finance's Market Domination Overtime. "I think the fact that leadership is likely to maintain consistency is probably why the market reaction, while notable... has been relatively muted when you're talking about a region that has been performing quite well and is up about 10% year to date, in dollar terms, which is not a bad run for the first half of the year." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.