Ipek Ozkardeskaya
Swissquote Bank Ltd
The second round of French legislative election brought new surprises on the table – to say the least. Not only Marine Le Pen’s far-right National Rally didn’t win a majority but the New Popular Front – which is a leftist coalition led by the far-left Jean Luc Melonchon – secured the biggest share of the cake, and did too well to soothe investors’ concerns regarding stability and the predictability of the French politics and the good health of the French finances. The market reaction was a swift fall in the euro at the open, the franc gained on the back of an early flow of capital to its safety, but the EURUSD recovered most of losses before the Europeans have stepped in.
In equities, shares of French banks will particularly be in focus. dividends and share buybacks.
Across the Atlantic, last week ended with heightened hope of Federal Reserve (Fed) rate cuts on Friday’s soft jobs data. Later this week, Fed Chair Jerome Powell’s semiannual testimony and the release of the all-important US CPI update will take the center stage.
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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