Central Banks
ECB Officials See No Cause for Alarm Over France’s Market Turmoil
- Situation in second-largest euro zone economy seen contained
- Snap election has caused spread to widen, stockmarket losses
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European Central Bank officials see no cause for alarm in the market turbulence that has engulfed France in the past few days, according to people with knowledge of the matter.
Turmoil that put the spread between French and German 10-year bond yields on track for its biggest weekly jump on record and wiped $200 billion off the value of the country’s stocks remains contained in the eyes of policymakers and no talks on crisis tools have even been considered as of Friday, said the people, who asked not to be identified because any deliberations are private.