You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While Chancellor Merkel is sure to win, the scale of her victory is likely to impact the future direction of bond spreads.
The prospect of ‘Trumponomics’ powered equity markets last year. ‘Macrononomics’ doesn’t only sound more like a real word, it could even have more powerful and longer-lasting effects. But the stakes are high.
Emmanuel Macron thrashed his far-right opponent Marine Le Pen in yesterday’s second round of the French presidential election. But markets withstood the temptation to take a victory shot.
The fact that the Euro Stoxx 50 index recorded its largest one-day gain since July 2012 on Monday suggests the importance for investors of Emmanuel Macron’s victory in the first round of the French presidential elections can hardly be overestimated.
Equity markets have welcomed Emmanuel Macron’s resounding victory in the first round of the French presidential elections. The euro also rallied and peripheral bond yields collapsed.
The French presidential elections have turned into a highly unpredictable four-horse race. All four candidates offer radically different visions on the economy, and on France’s place in Europe. But is there a way to prepare for the outcome if the result is still so much up in the air?