c-pen-RTS13P1Y-Pascal Rossignol

European markets are buoyed by France’s election but might dive after Italy’s

2.5%

The STOXX 600 index, that covers 18 European countries, closed the week up 2.5%, the best result since December.

Published   |  Photo by Reuters/Pascal Rossignol
c-pen-RTS13P1Y-Pascal Rossignol
2.5%

Relieved by the outcome of the first round of the French election, investors poured money into Europe.

c-pen-RTS13P1Y-Pascal Rossignol
2.5%

Market-friendly, pro-EU presidential candidate Emmanuel Macron is expected to win against populist candidate Marine Le Pen in the second round.

c-macron-RTS14NKM-Philippe Wojazer

Reuters/Philippe Wojazer

c-pen-RTS13P1Y-Pascal Rossignol
2.5%

But the real threat might come from Italy. There, populist party Five Star Movement is leading opinion polls with a protectionist, anti-EU agenda.

Italy currently has a larger public debt and weaker productivity growth than France.

c-pen-RTS13P1Y-Pascal Rossignol
2.5%

Optimistic about the result of the French election, to be decided on May 7 🇫🇷, investors still need to be wary of the challenges in the distance, with the Italian election due by early next year 🇮🇹.

Published

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