The markets’ reaction to the outcome of the first round of the French elections is one of relief for the reduction of the feared scenario of an absolute majority of Marine Le Pen at the outcome of the next round. We also like the hypothesis of a possible coalition between Macron’s party and the left in view of next Sunday’s vote, observes the market daily of MPS analysts.
The Paris Stock Exchange, despite being less tonic than at the start, is moving up by 1.3% and the spread between France and Germany is in sharp decline to 75 basis points, after the highs of 85 points reached on Friday, with yield of the French Oat at 3.3%.
The BTP spread on the Bund fell to 151 points with the yield on the Italian bond remaining at 4%.
The euro is also recovering ground.
Meanwhile, Piazza Affari gains 1.2% while the other price lists show a lower growth of less than 1%.
Investors’ attention is not only on French politics and the consequences for the EU. In the afternoon, they will look at German inflation, expected to slow down, and by the ISM manufacturing in the United States after the manufacturing PMIs released this morning in the European country.
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