LONDON MARKETS: FTSE 100 Leaps As Markets Take Heart From French Election Result
April 24 2017 - 4:23AM
Dow Jones News
By Carla Mozee, MarketWatch
Gold miners lag as investors embrace risk
U.K. stocks surged Monday, keying off a broad rally led by
French equities, as centrist Emmanuel Macron's first-round win in
France's presidential election eased worries that two euroskeptics
would be in the final runoff.
The FTSE 100 leapt 1.8% to 7,240.55, the largest percentage rise
since early December, according to FactSet data showed. Just four
components on the blue-chip index were losing ground.
In Paris, the CAC 40 ran up as much as 4%
(http://www.marketwatch.com/story/french-stocks-head-for-2-year-high-after-macron-win-eases-frexit-fears-2017-04-24)
after centrist Macron and far-right candidate Marine Le Pen came in
first and second in French voting Sunday
(http://www.marketwatch.com/story/french-stock-futures-soar-after-macron-election-win-eases-frexit-fears-2017-04-24).
There had been concerns among investors about the prospect of a
final-round showdown between Le Pen and far-left candidate Jean Luc
Melenchon. Le Pen wants a referendum on France's membership in the
European Union, and Melenchon had said a referendum should be held
on renegotiating EU treaties.
Macron is now leading the polls to win the presidency in the
final round in May.
"Polls for the second round between Macron and Le Pen have
consistently shown a 20%-plus lead for Macron. Indeed, he kicks off
the next stage of the campaign as clear favorite to win on 7 May,
especially given the relative accuracy of the polls this time
around," said Investec economist Philip Shaw, in a note.
"At some stage, attention may well turn towards Mr. Macron's new
En Marche party and the size of its representation at the National
Assembly elections on 11 and 18 June. But for now markets will
digest yesterday's results," he said.
Banks on the rise: London-listed bank shares were among the
biggest gainers, riding up alongside a surge in bank stocks in
France and across Europe.
HSBC Holdings PLC (HSBA.LN) pushed up 1.7%, Barclays PLC (BCS)
moved higher by 3.9%, and Royal Bank of Scotland Group PLC (RBS.LN)
bulked up 2.7%.
Also, Standard Chartered PLC (STAN.LN) advanced 3.3%, while
Lloyds Banking Group (LLOY.LN) picked up 1.7%.
Other movers: British Gas parent Centrica PLC (CNA.LN) was among
the few decliners on the FTSE 100, down 4%.
Gold miner Randgold Resources PLC (RRS.LN) fell 4.7%. The move
came as gold prices dropped more than 1%, as investors embraced
more risk assets.
The euro was up more than 1% against the pound, buying 84.73
pence.
(END) Dow Jones Newswires
April 24, 2017 04:08 ET (08:08 GMT)
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