An ebullient rally propelled global equities to all-time highs this week, buoyed by positive signs for global economic growth and US President Donald Trump’s “phenomenal” tax plans. But as the record-breaking week for equities unfolded, European political worries bubbled in the background.
Markets are becoming skittish about the forthcoming French presidential election. It is considered the key political event in the euro area this year, but concerns are amplified by elections in the Netherlands and possibly Italy, and renewed fears about a fresh Greek debt crisis.
Suggestions of cooperation between leftist leaders, which could increase their chances of a final round showdown with the eurosceptic Marine Le Pen, are causing further unease on trading floors worldwide.
Here are the key charts that show markets are already fearful of a Le Pen victory:
France government bond spreads are back to...
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