On Monday, most European stock indices slipped a bit after the market favorite, Emmanuel Macron, won the French presidential election on Sunday. Investors breathed a sigh of relief after the victory of Macron, a former investment banker who positioned himself as a “pro-European reformer,” over the nationalist Euro-skeptic Marine Le Pen. After the end of the voting, Macron declared that a “new page” was being opened in the history of the republic, and expressed the hope that this would be “a page of regained confidence and hope.” In general, investors calmly perceived the expected victory of Macron, partially taking profits. Now investors’ attention is directed to the French legislative elections on June 11, where the formation of a pro-presidential majority in the government will be key to the fulfillment of Macron’s election promises. Macron promised to introduce more effective public administration, reducing government spending, lowering tax rates and reforming the labor market. Today, the Euro has retreated from six-month highs, as investors fixed profits after the long-term growth of the European currency in anticipation of Macron’s victory in the French presidential election. The British pound was also declining against the background of the UK general election approaching and the Bank of England meeting this week. The decline in housing prices in Britain has become an additional incentive to weaken the pound. Oil prices remain stable, as investors cannot understand whether OPEC will be able to effectively withstand growing US production. In many respects, the further market situation depends on the ability of OPEC to extend the agreement on the reduction of oil production and to achieve its implementation by all participants. The volume of production orders in Germany in March increased by 0.1% compared to the previous month, which is in line with analysts’ expectations. The house price index in the UK from Halifax in April dropped by -0.1% compared to the previous month, while the growth forecast was 0.2%.

Leave a Reply

Your email address will not be published. Required fields are marked *