Morning Briefing: Markets react to Macron

Morning Briefing: Markets react to Macron

Morning Briefing: Markets react to Macron Markets react to Macron

The equity markets have reacted positively to the result of the French presidential election with Emmanuel Macron having defeated far-right candidate Marine Le Pen with a 65 per cent majority.

The new president may represent another European defeat to rising protectionism but as a young leader with no experience in an elected public role, his administration will need to act quickly to build confidence.

Asian markets closed mostly higher following the result but Shanghai dropped following data showing weaker-than-expected trade figures. Tokyo was the star performer with a rise of more than 2.3 per cent.

European markets are trending lower despite the Macron win. The victory was largely expected and profit taking is a factor in the easing of equities. German factory data and a Eurozone investor confidence index were both higher.

London’s FTSE is outperforming regional peers with an upward trend Monday ahead of the Conservative Party’s manifesto publication. The party, which has been in government since 2010 beginning with 5 years in coalition, is far ahead of rivals in the polls. The UK election is on June 8.

Wall Street and Toronto are expected to open higher. Canadian housing starts data is due.

Hudson’s Bay reportedly seeking debt advice for potential acquisition

Hudson’s Bay Company has reportedly hired a debt and restructuring expert to advise on a potential takeover of American department store firm Nieman Marcus Group.

An unnamed source has told Reuters that HBC has hired Evercore Partner investment bank to look into how the combination could work without it taking on the high level of debt carried by Nieman Marcus.

Without restructuring, a takeover including Nieman’s debts in full would mean Hudson’s Bay tripling its debt load.