European stocks
and the euro pulled back on Monday from highs touched after Emmanuel
Macron's emphatic but well-flagged victory in France's presidential
election as investors' focus shifted from politics to monetary policy.
With
the political risks that have dominated European markets in a year
packed with elections seen receding, the European Central Bank is
expected to have more room to tighten policy as the euro zone economic
recovery gathers pace.
European equities dipped, with French shares, which hit 9 1/2-year highs on Friday, underperforming the wider market.
The euro dipped against the dollar, having risen in early Asian trade to just above $1.10 when opinion polls signaled the scale of Macron's victory over anti-euro nationalist Marine Le Pen. That said, world stocks, as measured by MSCI's 46-country world index held close to a record high as the main measure of Asia-Pacific shares, excluding Japan, rose 0.8 percent.
It was a similar story in euro zone government debt markets: the premium investors demand to hold French rather than German benchmark 10-year bonds narrowed to its tightest in six months as markets opened on Monday, but then reversed.
Although Macron's victory with his business-friendly vision of European integration ensured there was no repeat of the populist surges that saw Britain vote to leave the European Union and President Donald Trump elected in the United States, the result was widely expected and analysts had forecast no major market moves.
Tokyo shares, resuming trade after a three-day market holiday, closed up 2.3 percent at a 17-month high. The pan-European STOXX 600 index was down 0.1 percent while France's CAC 40 index fell 0.6 percent.
European equities dipped, with French shares, which hit 9 1/2-year highs on Friday, underperforming the wider market.
The euro dipped against the dollar, having risen in early Asian trade to just above $1.10 when opinion polls signaled the scale of Macron's victory over anti-euro nationalist Marine Le Pen. That said, world stocks, as measured by MSCI's 46-country world index held close to a record high as the main measure of Asia-Pacific shares, excluding Japan, rose 0.8 percent.
It was a similar story in euro zone government debt markets: the premium investors demand to hold French rather than German benchmark 10-year bonds narrowed to its tightest in six months as markets opened on Monday, but then reversed.
Although Macron's victory with his business-friendly vision of European integration ensured there was no repeat of the populist surges that saw Britain vote to leave the European Union and President Donald Trump elected in the United States, the result was widely expected and analysts had forecast no major market moves.
Tokyo shares, resuming trade after a three-day market holiday, closed up 2.3 percent at a 17-month high. The pan-European STOXX 600 index was down 0.1 percent while France's CAC 40 index fell 0.6 percent.
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