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  • Here's what we're watching. We're trading under way in London.

  • In France, we are down to two candidates: Macron v.s. Le Pen.

  • And the market likes the sound of that second-round contest, looking for a Macron victory.

  • French banking stocks surging, and that's driving CAC 40 up 4% at the open.

  • Risk-on is not just confined to France, however.

  • Italian shares up more than 3% at the open, with even London's FTSE 100 up over 1.5%.

  • Euro climbed above 1.09 in Asia against the dollar—a five-month peak.

  • Single currency remains at 1%, around 1.083.

  • Euro has also sharply rallied against the pound and rose briefly against yen 120

  • its highest level since late March.

  • There's also a big reaction in bonds,

  • with the premium for French 10-year paper shrinking to less than 50 basis points over German bunds.

  • This spread was back near 80 basis points last week.

  • And the question is: how soon do we see this relationship revert to the 30 basis-point area that largely sufficed before November?

  • A snap poll shows 62% support for Mr. Macron, and only 38% for Ms. Le Pen.

  • That's the kind of spread the market really likes to see.

Here's what we're watching. We're trading under way in London.

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B1 UK FinancialTimes macron euro le basis french

Euro and French equities jump | Market Minute

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