French Election: “Le Pen will almost certainly be defeated in two weeks time, and equities can continue to rally going into 2018 as non-existential risks can be absorbed.”

by | Apr 23, 2017

Share this article

Facebook Open Graph

Timothy Graf, head of macro strategy EMEA, for State Street Global Markets, and Bill Street, head of investments for EMEA at State Street Global Advisors:

Timothy Graf, head of macro strategy EMEA, for State Street Global Markets commented: “With Macron heavily favoured in head-to-head polling against Le Pen, it seems most likely that the negative market scenarios – priced in over recent weeks – will recede between now and the run-off. As volatility subsides, spreads between French and German yields should narrow and we look for the euro to build on its recent stability against the dollar.”

Bill Street, head of investments for EMEA at State Street Global Advisors commented: “Le Pen will almost certainly be defeated in two weeks time, and equities can continue to rally going into 2018 as non-existential risks can be absorbed. The global economy might not be booming, but growth is returning.  Some of the moderate risk premia in the bond market will also disappear, and this would most likely benefit lower-quality assets the most.

 
 

“There could be more surprises to come in an event-packed European calendar however – UK elections, Greek debt talks, German elections, and the possibility of Italian elections in the not-so-distant future are enough to keep markets busy. Downside protection strategies are crucial given that the environment is likely to remain volatile.”

Share this article

Related articles

Cyber attack surge is “Tip of Iceberg”, expert warns

Cyber attack surge is “Tip of Iceberg”, expert warns

New figures showing a surge in cyber-attacks on businesses are just the “tip of the iceberg”, a leading expert has revealed.  Government data shows 50% of companies have experienced a breach or attack in the past year.  But Roy Shelton, CEO of the Connectus...

UK businesses record a 55% increase in sick leave

UK businesses record a 55% increase in sick leave

New analysis of over 1,700 businesses has revealed that the average business has seen a sharp rise in sick leave - with 55 percent more days lost in the last four years due to short and long-term illness. The Sick Leave Report 2024, conducted by HR systems...

Sign up to the IFA Magazine Newsletter

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode

x