European Markets Rose Due to Macron’s Lead in France
After falling to the lowest levels since February last week, the United Kingdom’s FTSE 100 index is trading higher in the morning session on Monday. Emmanuel Macron’s lead in the first round of France’s presidential election triggered a rally in European markets on Monday. The FTSE 100 opened 1.4% higher today.
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Stocks related to the banking sector rose in the morning session. Banks including HSBC Holdings, Barclays, and Royal Bank of Scotland Group led the sector rally. The win decreased geopolitical tensions and increased the risk appetite in the market. In the early hours on Monday, the demand fell for safe-haven assets like gold. On the other hand, the energy sector weakened amid speculations about Conservatives’ plans to keep a cap on household energy bills as part of their election manifesto.
The iShares MSCI United Kingdom ETF (EWU) fell 0.09% on April 21. At 6:30 AM EST on April 24, the FTSE 100 index was trading at 7,247.15—a rise of 1.9%.
Similar to other European markets, the German market opened higher amid the first round of France’s presidential election. Germany’s DAX index is trading at an all-time high price level due to a rally in European markets. The sentiment in German markets also improved due to the stronger-than-expected Ifo Business Climate Index. According to data released by the Ifo Institute for Economic Research, the German Ifo Business Climate Index rose to 112.9 in April. At 6:35 AM EST, the DAX index was trading at 12,410.25—a gain of 3%. The iShares MSCI Germany (EWG) closed the day at $28.34—a gain of 0.02% on April 21.
During the election relief rally, after the first round of France’s presidential election, France’s CAC 40 index rose to a nine-year high in the morning session. Emmanuel Macron and Marine Le Pen are getting ready for the runoff on May 7. The polls for the second round of voting gave more than a 20% lead to Macron. At 6:45 AM EST, France’s CAC 40 index moved to 5,289.80—a gain of 4.6%. The iShares MSCI France ETF (EWQ) fell 0.08% on April 21.