The euro opened higher on Monday morning at $1.0852 compared with Friday's close of $1.08095. It then pared its gains and was trading 0.2% lower at $1.7865 by 0200 GMT. It climbed 0.2% to a one-month high against sterling.Eurozone bond yields, particularly yields on French government debt are likely to dip on Monday on market relief about Macron's win. Yields on benchmark 10-year debt which hit more than seven-year highs last week may dip by 5-7 bps in European trading on Monday.
"Domestically, Macron will continue to push for some moderate reforms and some spending restraints, albeit keeping fiscal policy relatively accommodative. Internationally, it is likely to see acceleration of sanctioning Russia.""The markets should be relieved on the Macron win. We should see a modest tightening in French and German bond yield spreads. French stocks should open marginally higher but the euro will be buffeted by the surge in dollar rates last week.
"We could see OAT bond yields move 10 bps tighter and German bund-swaps spreads also narrow 5 bps. The euro should move a bit higher but in the medium term as the short term risk implication has ebbed. Macron now has some more time to put together more EU reforms namely on energy and more cohesiveness on key sectors such as energy and defence.""What we have learned form the last couple of years is that the polls are good but not completely reliable.
"For French stocks, we could see a small relief rally too. But after the knee jerk reaction, the focus will turn to the ECB and the rate outlook and that will be key driver for European stocks and bonds."
A wise young leader, late to speak, slow in steps, friendly to all his neighbors, calm in reaction and cool presence. Though I'm a conservative, we were impressed by his leadership in past five years. Welcome Mr. Emmanuel Macron as President of France again.
BREAKING!👀🤭😱🤯