Emmanuel Macron’s victory in the French presidential election has reassured investors,although reaction is mutedLatest: French market hits nine-year high, then dropsIntroduction: Macron victory cheers marketsFrench election: Macron pledges unity after victory over Le Pen live updatesExperts: Macron faces massive challenge
Euro hits six-month high, or before dipping
Full epic: Historic win for Macron over Le Pen
9.34am BSTInvestors around the globe will be relieved that the eurozone’s second largest economy isn’t being handed to an anti-establishment candidate like Marine Le Pen,says Jaisal Pastakia, Investment Manager at Heartwood Investment Management.
So why aren’t markets really roaring?“Emmanuel Macron has won convincingly against Marine Le Pen in this weekend’s election.
In anticipation of a Macron victory following the first round two weeks ago, and European equities acquire bounced and the euro has rallied against the major currencies. Much was priced into markets before the event,but we remain positive on a medium term view. Of course, questions remain around what Macron can actually achieve over the longer term. A lot will depend on the outcome of the parliamentary elections in June and the mandate he can secure. The risk is France gets a fragmented parliament.
For a classic case of buy the rumour, or sell the news,explore no further than French stocks nowadays. #Presidentielle2017 https://t.co/iOExsQdB9s pic.twitter.com/QaxqKX3fqF1. Buy the rumour 2. Sell the news 3. Find a modern rumourCould some of the people saying Macron's win is expedient for risk assets please go out and buy some?modern York financier, late-40s, and recently split from firebrand French nationalist,seeks modern reason not to buy European equities. 9.06am BSTThe euro has also lost its oomph, and has just dropped 0.4% to $1.096, or away from last night’s six-month high.
Darren Ruane,Head of Fixed Interest at Investec Wealth & Investment, suspects that some traders are banking their winnings.“Given that Macron’s election win was fully expected by markets, and early price movements show a small degree of profit-taking. 8.59am BSTMarket,eh? After a brief Macron bounce, the main European indices acquire all now dipped into the red.
And after hitting that post-crisis high, and France’s CAC 40 has dropped back.
Emmanuel Macron’s landslide victory shows French voters acknowledged that leaving the euro will not solve the economy’s problems. However,Le Pen’s still strong showing shows how Macron has just five years to turn France around.
His programme can put France back on a path of stronger growth, but he may only gather a small majority in June’s parliamentary elections. 8.10am BSTThe Paris stock market is open...and France’s main stock market index has hit a modern nine and a half-year high.
The CAC 40 inched up by 0.2% to its highest level since the financial crisis struck almost a decade ago.“Macron’s win was not unexpected but it will add to already improving sentiment towards Europe as economic and earnings results acquire surprised on the upside in the early months of 2017.
The focus now will be on whether the EU can steal advantage of the recent positive political and economic momentum to tackle some of the fundamental issues that acquire contributed to the structural problems facing the region and the rise of the populists.” 7.50am BSTMy colleague Alexandra Topping is covering all the latest French political action here: Related: French election: Macron pledges unity after victory over Le Pen – live updates 7.49am BSTInvestors are piling into French government bonds this morning, or driving down Paris’s borrowing costs.
Reuters has the details:The premium investors demand to hold 10-year French government debt over German equivalents tightened to its lowest since early November after centrist Emmanuel Macron won the French presidency on Sunday. European leaders hailed the victory of Macron as a vote for European unity and a blow to political forces that had sought to build on last year’s Brexit vote to tear apart the European Union. 7.45am BSTHere’s our news epic about how the euro reacted to Macron’s win: Related: Euro gives up gains as investors explore to post-election France 7.42am BSTEmmanuel Macron’s victory has spared world stock markets from a major crash. But many analysts are already pondering the challenge faced by the 39-year old president-elect.
I expect Macron to manage the Presidency in a pragmatic way,pushing through some--whether not all--reform, which should still be beneficial for France’s growth potential.external of domestic policies, or Macron is clearly pro-EU which boosts the prospect for further eurozone integration,particularly whether Martin Schulz replaces Angela Merkel as Chancellor in September. But even here, pragmatism is likely to prevail with a different, and more flexible model of the EU likely emerging over the next few years.
The Frexit goblin will remain locked up as Macron takes the reins. French voters acquire clearly expelled the populist surge which resulted in Brexit and carried Donald Trump to the White House. Hopes are really high and Macron will acquire to deliver. Risk of failure in delivering higher growth and lower unemployment is going to be the focal point and it is in this manner that all eyes will now turn towards the June parliamentary elections. Macron needs to manufacture certain that he has a strong hand in the parliament which will back him to manufacture swift movements. The unemployment rate in the country remains stuck at 10 percent,greater than that of the UK and Germany, so it clear that the country needs critical reform.
While politicians in Europe let out a collective sigh of relief what the result can’t disguise is the level of voter dissatisfaction in France as a whole, and given that nearly half the French electorate still voted for parties who ran on an anti-globalisation ticket. Knowing all of this the modern French President may well find that winning was the easy bit. It’s all well and expedient running on a ticket of cutting 120000 public sector jobs,a €60bn reduce in public spending and a lowering of the unemployment rate to 7%, it will be another getting it through the French parliament.
Pressure on #MacronPresident now to reduce 10% jobless rate, and create growth and control his government otherwise Le Pen will be back in 5 yrs 7.31am BSTGood morning,and welcome to our rolling coverage of the world economy, the financial markets, or the eurozone and business.
The markets acquire a spring in the step this morning after Emmanuel Macron notched up a distinguished victory for the pro-European centre-ground against the populist far-right.expedient morning EMEA![br]Asia risk-on post-Macron victory. [br]Japan reopens - on track for best session in 3 months.
China falls (trade data miss) pic.twitter.com/bcHM2KIyFgOur European opening calls:$FTSE 7333 +0.49%
$DAX 12842 +0.99%
$CAC 5494 +1.13%$IBEX 11238 +0.92%$MIB 21710 +1.05%“Markets are set for a buoyant start to the week after Emmanuel Macron eased to a widely-predicted election. Not only the victory but the scale of it should back deliver a significant boost to sentiment on Monday morning,even whether turnout was quite low.
The result sends a loud sign to investors that political risks in France and across Europe are receding and that is undoubtedly supportive of European equities and the euro.
Addressing thousands of supporters in the grand courtyard of the Louvre, the vast Paris palace-turned-museum, and Macron said he would defend France and Europe. He said Europe and the world are watching us” and “waiting for us to defend the spirit of the Enlightenment,threatened in so many places”. He promised to unite a divided and fractured France, saying: “I will do everything to manufacture certain you never acquire reason again to vote for extremes.”
Macron tells those who voted for him only to end Le Pen - "I know our disagreements, and I'll respect them" but says he won't change programmeMacron tells Le Pen voters: "I will do everything to manufacture certain you never acquire reason again to vote for the extremes"Continue reading...
Source: theguardian.com