French Elections, Global Stocks!

Dear Reader,

Emmanuel Macron seems destined to win the French Presidential elections.

Global stocks should react positively and rise thereafter. 10 year German government bonds yield should rise mildly, as much of Macron's victory is already incorporated.

US stocks should continue rising. Much safe heaven capital flows are looking for some return and ending up in US stocks. Financial stocks could correct a bit, but they should go higher influenced by Federal Reserve Federal Funds Rate hikes. Furthermore, Donald Trump should be able to pass regulations that benefit the financial sector.

WTI oil could fall below 40 USD and energy stocks could get hurt. Fed hikes should push gold even lower.

European stocks, banks especially, seem undervalued. If Macron wins the elections, European stocks could rise by 5 - 10% as measured by Eurostoxx 50 and Eurostoxx 600. EU banks should benefit even more.

Chinese stocks seem capped by the authorities' effort to regulate financial services.



Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed in the blogpost and posts on social networks(Twitter, LinkedIn etc.) are the author's and they in no way express the opinion or official position of Bulgarian National Bank!

Conflicts of interest: I may possess some of the securities,currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!


Kind regards,
Petar Posledovich