Shares leap to 2008 levels thanks to Macron effect
Shares on the Irish stock exchange soared amid a wider rally on European stock markets yesterday as investors revelled in the first round victory of French presidential candidate Emmanuel Macron.
The Iseq leapt by 207 points, or 3.08pc, returning the index to levels last seen before the financial crash in mid-2008.
But Owen Callan, an analyst at Investec, claimed the market reaction to the final result on May 7 is likely to be far more tepid as fears of an existential threat to the single market dissipate.
He claimed the market gains of a Mr Macron presidency are "priced in now by 90pc or more".
While Alan McQuaid, chief economist of Merrion Capital, predicted another fillip to shares from a "positive outcome" next month, he warned investors' euphoria may soon be tempered by weaker economic growth figures from the UK and US. Preliminary GDP results for the first three months of the year are due at the end of the week and are widely anticipated to show a decline on the previous quarter.
Mr McQuaid said the French election results may prompt more hawkish language from the European Central Bank at its June meeting, signalling a tightening to its stimulus regime. But he said a rate rise remains unlikely until 2018.