Relief across Europe as Emmanuel Macron eclipses Marine Le Pen in French TV debate
Political risk gauges in Europe eased after anti-EU candidate Marine Le Pen lost ground to her centrist opponent Emmanuel Macron in the French election debate
London: Political risk gauges in Europe eased after anti-EU candidate Marine Le Pen lost ground to her centrist opponent in the French election race when their rivalry moved to TV screens.
The cost of default insurance on French sovereign debt fell while bearish bets on the euro continued to dwindle with the common currency gaining against most of its peers. Independent Emmanuel Macron solidified his standing as a leading contender in opinion polls taken after the debate on Monday viewed by about 9.8 million people.
The cost of hedging against CAC 40 Index volatility in the next two months has fallen from a record relative to bets for swings in the Euro Stoxx 50 Index.
In the options market, traders pared bearish bets on the euro against the dollar. Euro-dollar’s two-month risk reversal rate, a gauge of market positioning and sentiment, shows confidence in the common currency bouncing off the lowest level in eight months. Bloomberg
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!