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Rolling coverage of the latest economic and financial newsFrench banks are being hit by the political uncertainty created by Emmanuel Macron’s snap election.Société Générale shares have slumped by 5.4%, while BNP Paribas has lost 4.4% and Credit Agricole is down 4.1%.Investors are assessing Macron’s gamble in attempting to reassert his authority after voters shifted en masse to the Far-right during the EU elections, in both France and Germany. The euro has dropped sharply against the dollar, to $1.074, the lowest in a month amid the surprise turn of events.The two main take-aways of the election results are (1) the centrist majority in the European parliament is holding as the far-right did not outperform and (2) the biggest impact could be at the national level with Macron calling a legislative election.As implied by opinion polls, centrist parties managed to secure a majority in the European parliament. While the far-right saw gains, fears of a populist shock at the EU level seem to have been premature. This is all the more the case, as right-wing parties are not a coherent bloc. Nevertheless, while the elections did not bring a seismic shock to EU-level politics, they are still likely to shift the direction of travel for policy over the next five years. Continue reading…
Rolling coverage of the latest economic and financial news
French banks are being hit by the political uncertainty created by Emmanuel Macron’s snap election.
Société Générale shares have slumped by 5.4%, while BNP Paribas has lost 4.4% and Credit Agricole is down 4.1%.
Investors are assessing Macron’s gamble in attempting to reassert his authority after voters shifted en masse to the Far-right during the EU elections, in both France and Germany. The euro has dropped sharply against the dollar, to $1.074, the lowest in a month amid the surprise turn of events.
The two main take-aways of the election results are (1) the centrist majority in the European parliament is holding as the far-right did not outperform and (2) the biggest impact could be at the national level with Macron calling a legislative election.
As implied by opinion polls, centrist parties managed to secure a majority in the European parliament. While the far-right saw gains, fears of a populist shock at the EU level seem to have been premature. This is all the more the case, as right-wing parties are not a coherent bloc. Nevertheless, while the elections did not bring a seismic shock to EU-level politics, they are still likely to shift the direction of travel for policy over the next five years.
