After a shooting in central Paris on Thursday, the euro fell sharply.|
The euro is now trading at 1.071 against the dollar.
Adding to investor woes, are the imminent French elections this Sunday. Marked by uncertainty and euroscepticism, investors will be tightly glued to the outcome of the first round of the French presidential elections. There should be an increase in market volatility today and when the market opens on Monday.
Investor jitters sent France’s stock index tumbling in yesterday’s trading session. The CAC 40 is now trading at €4975.50, already down 0.8% this morning. The bearish tones have touched most European equity markets. Germany’s Dax 30 has shed 0.2% today, at €12039. Italy’s FTSE MIB has lost 0.3%, at €19325.
Investor sentiment seems to be better in the US, albeit only slightly. The S&P 500 is up 0.07%, at $2354, the DJ 30 is flat, at $20531.
Yesterday, the S&P enjoyed its second-best day this month, thanks to the promise of fiscal stimulus from the Trump administration. U.S. Treasury Secretary Steven Mnuchin’s stated that US tax reform plans have progressed.
Further cushioning US equities was Dallas Federal Reserve President Robert Kaplan’s comments. The Fed member reiterated that three rate hikes were still on the cards for 2017. The remark shot up the likelihood of a June interest rate hike to about 60%.
Disappointing UK retail sales sent sterling lower this morning. The pound is now trading at 1.28 against the dollar. The weaker pound is helping to support the FTSE 100, which is up 0.04% at £7061.
The Japanese yen is firmer as investors seek refuge in the safe-haven asset. Investor angst is also supporting gold. The precious metal is now at $1281.50.
After the mid-week drop which pared 3.8% off crude oil prices, the commodity is flat at $50.68.
Market Watchlist
Global and especially European shares will be very volatile over the next few trading days.
Volatile equities will include, but will not be limited to; Danone, Engie, credit Agricole, Carrefour (PA:CARR), Peugeot, Orange, and CAC 40.
For our American traders, Tesla (NASDAQ:TSLA) is the stock to watch at the US market open. The automaker recalled more than 50,000 cares after a faulty brake scare.