Euro under the pressure of French political turmoil [Video]
|Last week was brilliant for the major US indices but gloomy elsewhere. Stocks in the Chinese CSI 300 fell below their 200-DMA and extended losses to more than 5% since the May peak. Japanese stocks took a dive this morning to lowest levels in more than two weeks and stocks in Europe lost 3% during the course of last week as the French election jitters ended in tears for the French CAC 40 which tumbled more than 6% compared to the previous Friday’s close.
Thousands of people took the streets to show their opposition to the far right’s rise – but Marine Le Pen’s party is still seen amassing more than 30% of the votes in the upcoming legislative elections. And because conservative policies never bode well with investment prospects, we will likely see French, the European markets and the euro under a continued pressure this week. The spread between the French and German 10-year yield spiked past 80bp, the highest since the debt crisis that hit the Eurozone more than a decade ago.
Elsewhere, the Reserve Bank of Australia (RBA) and the Bank of England (BoE) will announce their latest policy verdict on Tuesday and Thursday respectively.
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