Brazil real, Mexico peso strengthen on French vote

SAO PAULO: The Brazilian real and the Mexican peso strengthened on Monday after centrist Emmanuel Macron won the first round of the French presidential elections, driving a risk-on rally around the world.

Opinion polls have Macron handily beating far-right leader Marine Le Pen, whose anti-establishment rhetoric had stoked investor caution in recent days, in a second round vote on May 7.

On Monday, French President Francois Hollande called on voters to back Macron, warning of dangerous consequences if Le Pen were to win.

The Mexican peso and the Brazilian real both strengthened around 1 percent against the US dollar. Global stock markets also rose, with the MSCI All-Country World hitting an all-time high.

Brazil's benchmark Bovespa stock index advanced 1.3 percent, tracking the global rally. Shares of Hypermarcas SA were the biggest gainers, supported by press reports of buyer interest in the drugmaker.

Two people with knowledge of the matter told Reuters Johnson & Johnson, Novartis AG and Takeda Pharmaceutical Co Ltd are in talks with the controlling bloc of Hypermarcas for a buyout.