8th May 2017
Good morning. After all the talk and market moves it was no great surprise to see Macron win the French vote for the next President of France. Futures prices are little changed from Friday – the Dax had an initial dip as IG started up last thing on Sunday, but both that and the FTSE 100 are back to Fridays out of hours high. Not quite the same as after round one!
“The euro went above $1.10 – the first time it has done so since the US election result – after opening at $1.09 and the single currency also surged against the pound, hitting 84.9p from an opening level of 84.7p. Markets had feared that Ms Le Pen would act on her plans to take France out of the euro, threatening the very heart of the EU project. But Mr Macron’s success looks set to cheer markets and is expected to drive on the country’s current economic resurgence.” [Ref Telegraph]
Onto the next market moving thing, the UK General Election now!
The top of the daily channels for the FTSE are around the 7360 level so if we get a bull Monday, bear Tuesday scenario today we might see some resistance around here. The 2 hour chart is bullish now after Fridays rise, with support at 7272.
FTSE 100 Outlook and Prediction
Most of the Macron win is mostly likely already priced in, especially with the Dax showing strength through most of last week, and a spurt up before the close on Friday. As such, those that were betting on the Macron win will be keen to bank some profits soon.
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