Ipek Ozkardeskaya
Swissquote Bank Ltd
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.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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