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8 May 2017
 |
| European stock (The Total Investment & Insurance Solutions) |
European stock markets gave up some recent gains Monday after Emmanuel
Macron comfortably won the French presidential election. Over the past couple
of weeks, European stocks, particularly French ones, had been buoyant on
expectations of a Macron victory over the far-right candidate Marine Le Pen.
KEEPING SCORE: In Europe, the CAC 40 index in
Paris was down 0.9 percent at 5,385 while Germany's DAX fell 0.3 percent to
12,685. The FTSE 100 index of leading British shares bucked the trend, trading
0.1 percent higher at 7,307. Wall Street was poised for a lower opening, with Dow
futures and the broader S&P 500 futures down 0.1 percent. The Total Investment & Insurance
Solutions
MACRON WIN: When Macron topped the first
round of voting in the French presidential election two weeks ago, French
stocks soared to near-decade highs. On Monday, the reaction to his clear
victory in the runoff was subdued: investors had been fully expecting it and
seem wary of the difficulties he'll face governing a divided country. The clear
bias in favor of Macron in the markets over Le Pen rests on a number of
factors, above all his views on Europe. Macron is a keen advocate of the
European Union and the euro currency, while Le Pen has proposed taking France
out of both.
ANALYST TAKE: "It's been a lively start
to trading on Monday, with the initial relief rally following Emmanuel Macron's
victory in the French election quickly fizzling out as the euro and European
stock markets reversed gains to trade lower on the day," said Craig Erlam,
senior market analyst at OANDA. "What we're seeing this morning is a
classic case of the rumor — or the expected result in this case — being bought
and the fact being sold." The
Total Investment & Insurance Solutions
EURO REACTION: After initially rallying to
six-month highs above $1.10 in the wake of the Macron result, the euro faltered
and was trading 0.5 percent lower at $1.0945. The Total Investment & Insurance Solutions
ASIA'S DAY: Earlier, Asian stock markets,
which were the first to respond to the Macron win, rallied. Japan's benchmark
Nikkei 225 added 2.3 percent to finish at 19,895.70 and South Korea's Kospi
index hit a record high ahead of a presidential election Tuesday, gaining 2.3
percent to 2,292.76. Australia's S&P/ASX 200 gained 0.6 percent to 5,870.90
and Hong Kong's Hang Seng gained 0.3 percent to 24,547.98. The Shanghai
Composite lost 0.8 percent to 3,078.61 on weaker than expected trade data for
April. In currency markets, the dollar was down 0.1 percent at 112.59 yen. The Total Investment & Insurance
Solutions
ENERGY: Benchmark New York crude was steady
at $46.22 a barrel while Brent, the international standard, fell 0.1 percent to
$49.06 a barrel. The Total Investment
& Insurance Solutions
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