Business Irish

Sunday 18 March 2018

French relief rally fades fast as oil slips

The German share prize index (DAX) board is seen at the trading room of stock exchange in Frankfurt
The German share prize index (DAX) board is seen at the trading room of stock exchange in Frankfurt

US stocks slipped from all-time highs, while the euro weakened following a convincing defeat of populism in France's presidential election that investors had already priced in. The CBOE Volatility Index dipped below 10 for the second time this month.

The S&P 500 Index popped above its intraday record before turning lower as materials producers fell with metals prices.

Volatility slumped and the euro weakened having climbed for five of the past trading six days in the build-up to the election of Emmanuel Macron in France. The dollar gained, while Treasuries turned lower. Oil pushed above $46 a barrel, as the Saudi oil minister said Opec's supply cuts will be extended.

Mr Macron's decisive triumph over the anti-euro Marine Le Pen will strengthen the EU and deal a blow to the populist wave that has roiled western democracies for the past year. But there was little room for a relief rally, focus has already shifted to the challenges facing the incoming president.

French shares inched higher to a six year high, and the country's borrowing costs fell.

Global stocks are trading at the highest ever, and US equities also closed at a record last week after better-than-forecast data on American jobs.

In Dublin the Iseq closed down 0.62pc at 7,102.29. The euro fell 0.5pc to $1.0944, after gaining as much as 0.2pc earlier

Aryzta led declines after a statement confirming that a review of possible alternatives for its 49pc shareholding in French frozen food company Picard remained ongoing.

The statement comes following speculation of a possible sale that pushed Aryzta shares up as much as 6.8pc in Zurich trading on Friday.


Irish Independent

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