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By Anthony Doyle, Investment Director at MG's Retail Fixed Interest team
We have witnessed some big moves in financial markets in the early hours of trading today following the confirmation that Emmanuel Macron will face Marine Le Pen in the second round of the French Presidential election. European corporate bond spreads were tighter on the news, and the euro was up by over 1% versus the U.S. dollar.
The relief rally was spurred on by the latest opinion polls suggesting a comfortable lead for Macron, indicating that he will be the next President of France. The market is now pricing in a "President Macron" scenario with a fairly high degree of confidence. Of course, a Le Pen victory should not be entirely discounted, and the markets may...
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