While European stocks have already risen strongly in recent weeks, most believe further the region still provides an opportunity for significant gains following the French election.

Media stocks have rocketed higher on Monday as investors digest the possibility of a change in media laws and private equity makes an offer for Fairfax Media.

The euro rose and shares are expected to rally on relief that centrist Emmanuel Macron won France's presidential election.

A likely improvement in the budget outlook should keep the rating agencies at bay, despite more spending for infrastructure.

• Sponsored

The local sharemarket is set to drift lower at the open, following global markets down as investor caution returned.

Local shares are poised to start the week sharply higher, after Wall Street's S&P; 500 index closed at a record high, paced by energy stocks.