Market stabilized after Le Pen promised to respect political institutions if elected

From Yahoo Finance: 2024-06-17 04:57:14

After a selloff, European stocks and bonds stabilized as France’s far-right leader Marine Le Pen pledged to respect political institutions if she wins the upcoming snap parliamentary election. This assurance caused the Paris market to bounce and French bonds to remain steady near 3.18%. Le Pen’s National Rally group is on track to become the largest party in the lower house, appealing to moderates and investors. ECB officials see no cause for alarm over French market turmoil, but Citigroup analysts warn of risks for European equities if a far-right majority emerges in France. The Bank of England may delay policy easing until August due to economic pressure.

Amid ongoing market turbulence, China’s PBOC kept its one-year MLF interest rate unchanged, reflecting pressure on economic growth. Property developers’ shares fell after home prices decreased in May, despite efforts to support the real estate market. Oil prices dipped after a weekly increase. Important events this week include economic reports from Italy, the US, Eurozone, and Japan, as well as rate decisions from Australia and Indonesia. Central bank meetings in Canada, Norway, and Switzerland may indicate a pause in rate cuts. Various Fed officials are scheduled to speak on economic matters. Stocks are fluctuating, while currencies and bonds show mixed movements. Oil and gold prices are also affected by market dynamics.



Read more at Yahoo Finance: Market Selloff Pauses as Le Pen Comments Soothe: Markets Wrap