Ms Albarran said: “A lot of the optimism about France had relied on Mr Macron being able to continue to deliver legislative reform. That is going to be really difficult if you have a parliament that is at odds with you.”
That is compared to recent stability in the UK, which Ms Albarran said is a “demonstration of what markets do and don’t like”.
British equities have long been considered cheap compared with stocks in other markets, fuelled by a discount post-Brexit.
While there is still a long way to go to close that gap, Ms Albarran said a large Labour majority would increase demand for UK stocks.
She said: “Markets like stability and clarity from a political perspective. The fact that we have seen a bit more interest over recent weeks is quite encouraging.”
“If the UK is in a period of political stability, especially if it can deliver better growth, then it might look a more attractive prospect if Europe suddenly is in a more existential crisis.”
Keith Balmer, a portfolio manager at Columbia Threadneedle Investments, shared this sentiment, saying foreign investors would again start to look to the UK.
He said: “With the expectation of a two-term Labour government, the least that we should hope for is greater stability and longer-term planning. This should attract international investors back to the UK.”