Europe Traders Look for Cover on Surprise Call for French Vote
- Euro Stoxx 50 implied volatility surges relative to S&P 500
- Currency options traders build up bearish euro positions
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Forget about a summer swoon in European options.
After French President Emmanuel Macron shocked markets by calling for a snap vote following a surprisingly strong performance by right-wing political parties in European elections, the region’s equity options are implying a level of stress relative to the US usually seen around geopolitical conflict or broad financial upheavals.