Traders Shun Risk as French Turmoil Rattles Globe: Markets Wrap
- France-Germany yield spread widens by most on record this week
- US consumer sentiment unexpectedly falls to seven-month low
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A renewed wave of anxiety gripped global markets as concern over a political crisis in France deepened, driving stocks down while spurring a flight to haven assets — from bonds to gold and the US dollar.
Traders took some risk off the table, with French shares this week losing roughly $210 billion in value — about the size of Greece’s economy — after President Emmanuel Macron called a snap election. France’s bonds were at the heart of the rout in the span, with the premium investors demand to own 10-year debt over German peers jumping by a record this week.