European stock markets in sharp decline after the EU elections
European stock markets open negative after the EU elections, which recorded a broader shift towards right-wing and far-right parties, also causing some political earthquakesas in France where President Emmanuel Macron called for a flash election following the strong rise of Marine Le Pen’s National Rally party.
Risk appetite among investors is reducing, even after stronger-than-expected U.S. jobs data fueled concerns that the Federal Reserve may wait longer than hoped to cut interest rates. Piazza Affari opens the session with a decline the day after the elections for the renewal of the European Parliament. The Ftse Mib lost 0.70%, to 34,416 pointsthe.
In the first exchanges the Cac 40 index in Paris lost 2.17% to 7,827.91 points, the Dax 30 in Frankfurt fell by 0.72% to 18,422.55 points, the Ftse 100 in London fell by 0.64% to 8,192.85 points.
Government bonds: spread opens higher after the EU vote, rate at 4%
The spread between BTP and Bund rises at the start of the day after the European elections. The differential between the two ten-year government bonds goes from 133 to 137.6 points and the yield on the Italian ten-year bond rises above 4 percent while the German one remains at 2.62 percent.
Single currency down after EU vote results
Investors are also paying attention to currencies, as well as stock markets, in particular the euro, which suffered a decline after the European elections, falling to the lowest levels of the last four weeks. A fall of 0.3% caused by increasing political uncertainty in Europe. French President Emmanuel Macron’s call for an early election, in response to the growing popularity of Marine Le Pen’s National Rally party, has contributed to further political turmoil, putting pressure on the euro. The latter was also influenced by the strengthening dollar, followed by solid US employment data.
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