Market Concerns Eased

24 April, 2017

The first-round voting of the French presidential election was revealed on Sunday night April 23. The two top candidates: independent centrist Macron and the far-right wing Le Pen, won 23.7% and 21.7% of votes respectively. Fillion and the far-left wing Jean-Luc Mélenchon both got around 19% of votes. The result was in line with expectations, black swans didn’t appear.

As Macron got the first place in the first-round of voting, surpassing Le Pen with 2% of votes, market concerns over the EU’s collapse after Le Pen’s presidency has been eased to an extent.

The consensus was that Macron and the Le Pen would likely get into the second round with Macron likely winning the final vote. The outcome is in line with the first half of the consensus. Markets are now focused on the second-round of voting with the first-round outcome lifting market confidence and expectations on Macron’s victory in the second-round on May 7.

The voting ratio was around 80%, higher than the forecast of 70%, indicating French civilians’ high concerns on the futures of France and the EU.

The outcome of the first-round voting pushed the EUR and European stocks up, and weighed on safe havens. EUR/USD soared more than 180 points, hitting the highest level of 1.0918 since November 11, 2016. EUR/JPY hit a 1-month high of 120.72. USD/JPY hit a 2-week high of 110.53. Spot gold plunged from 1284.17 to a 2-week low of 1265.38. France’s CAC 40 index hit the highest level of 5393 since January 2008. The Euro 50 index hit the highest level of 3578.10 since March 2015.


Source  
Americans pass pandemic holiday in parks as death toll nears 10000025 May, 2020  

Americans sunbathed on beaches, fished from boats and strolled on boardwalks this holiday weekend, but the occasional person wearing a mask was...

New U.S. House coronavirus bill contains $3 trillion plus in aid13 May, 2020  

The Democratic-led U.S. House of Representatives unveiled on Tuesday a sweeping new coronavirus bill with more than $3 trillion in assistance to states...

The phantom threat of inflation and fears of the virus second wave12 May, 2020  

Asian indices are losing about 1% on Tuesday morning while futures for European and US indices point to open in the red. This is associated...


UK could start lifting coronavirus lockdown measures7 May, 2020  

Britain now has the highest Covid-19 death toll in Europe, according to the latest official figures, climbing past Italy which, alongside Spain, has been among the...

Scientists Create Antibody That Defeats Coronavirus in Lab5 May, 2020  

Scientists created a monoclonal antibody that can defeat the new coronavirus in the lab, an early but promising step in efforts to find treatments and curb...

Saving more money than ever is destroying the economy4 May, 2020  

The COVID-19 pandemic is hurting many spheres of the economy. To slow the spread of the virus, the government told people to stay at home. Tons of businesses...


US weekly jobless claims hit 3.84 million1 May, 2020  

First-time filings for unemployment insurance hit 3.84 million last week as the wave of economic pain continues, though the worst appears to be in the past, according...

These countries effectively contained the coronavirus28 Apr, 2020  

Countries like Australia, New Zealand and South Korea are among the few which managed to buck the trend and put a lid on the coronavirus outbreak, at least for now...

Europe Is Taking a Harder Look at China After Virus Suspicions20 Apr, 2020  

European governments struggling with the fallout from the Covid-19 pandemic are hardening their positions toward China as suspicions grow over...