« House’s view: don’t miss inflation »
What would happen in the event of an unexpected French presidential race outcome (Le Pen/Melenchon in the 2nd round of the election) ? Nothing good, according to many market observers.
Citi has been trying to figure out what this would mean for financial markets. No surprise there, the unexpected outcome might be bad.
Investors hold firm to their Eurozone equities despite growing worries about the outcome of the French presidential election, according to the latest poll on investor positioning published by Bank of America Merrill Lynch.
Investors consider a « Le Pen Win » might produce a 5-10% market correction, but the real risk would be a Europe disintegration in the case of « Frexit », which would have deeper and far more negative implications.