 Euro is once again capturing market attention today as this week's significant selloff resumes. The steep decline has been driven by rising political tensions in France, as the snap parliamentary election called by President Emmanuel Macron has heightened investor anxiety, particularly as left-wing parties coalesce against him. There is a growing concern among market participants that the far-right, led by Marine Le Pen's National Rally, could secure a victory and promote a high-spending agenda, exacerbating France's already substantial debt burden. This political uncertainty has triggered safe-haven flows towards German bonds, resulting in a drop in German benchmark yields while French yields have remained steady. Consequently, the spread between French and German borrowing costs is on course for its largest weekly increase since Eurozone debt crisis in 2011, and hit the highest level in four years. French stock market, represented by CAC 40, has also suffered, reaching its lowest level since January... |
