Analysts at ANZ explained that the positive market impact of Macron’s presidential victory was short lived and limited to Asian trading.
“The EUR came under selling pressure in Europe as investors took profit on long EUR positions and focused on whether or not Macron will be able to win a majority in the legislative elections in June (11th and 18th). This selling continued when NY opened.”
“Scepticism is dominating: since 1995, French presidents (Chirac, Sarkozy, Hollande) have campaigned on a platform of reform, but have achieved little. Apart from the reaction to the French election, it was a quiet day for data releases.”
“The CAC 40 fell 0.9% and most other European bourses were a touch weaker following yesterday gains. US equity indices fluctuated around record highs with little to drive direction.”
“Yields rose with a late bounce in commodity prices and Fed speak – the bell whether US 10-year up 2bps to 2.37% and a June hike 100% priced. Commodity prices staged a late recovery as Saudi Arabia and Russia both signalled publically for the first time they could extend production cuts into 2018. Earlier oil prices had been under pressure as Libyan supply was the highest since October 2014.”