Economics
Banks Stick to Market-Friendly Scenario for French Elections
- Macron seen winning the French presidency against Le Pen
- Credit Suisse expects a positive outcome for European economy
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The French-German 10-year yield spread may have reached the widest since February this week, but banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. are still predicting a market-friendly scenario from the outcome of France’s presidential election.
The yield difference, which has been a barometer for perceived election risk, widened for a third day Tuesday, reaching 78 basis points, the most since Feb. 22. Despite these jitters, strategists foresee a pro-Europe candidate winning the election, with the independent Emmanuel Macron seen beating Front National leader Marine Le Pen in the second round of voting in May.