European Stock Investors Shrug at French Election Risk: Chart

In a departure from the selloffs that preceded the U.K. referendum last June and the U.S. election in November, European stocks are showing little investor concern in the run-up to the French presidential election. That’s because the Stoxx Europe 600 Index is pricing in expectations of a pickup in global growth rather than a political-risk discount, strategists at Deutsche Bank AG wrote in a note. They predict a “mild upside” for the shares in the event of a runoff between Emmanuel Macron and Francois Fillon after Sunday’s first-round vote, and greater potential for losses if Marine Le Pen and Jean-Luc Melenchon prevail.

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