Markets in the US followed European shares higher after the results of the election in France which, while resulting in a runoff, favored the centrist candidate. The euro rallied and the French stock market gained over 4%. Here at home the Dow gained an impressive 216 points to 20,763 on heavier trading volume.
The results in France showed some important things. One being that the polls were mostly correct so this gives the prognisticators confidence going into the May 7th runoff. Also the results take the possibility of systemic risk off the table for now in terms of France. The gurus had predicted that a far right win would lead to a vote for France to leave the EU thus upsetting the financial system within the EU. The actual results for yesterday caused a sigh of relief in Brussels and bank stocks rallied on heavy volume in both Europe and the US. The results also took some wind out of the sales of gold which fell $11.70 an ounce to $1,277 an ounce.
There will be a slew of earnings report beginning tomorrow with McDonald’s reporting as well as Alcoa, Paccar and about a hundred other companies. There you have it…hamburgers, aluminium and semi trucks…. all part of the American experience wrapped into neat quarterly earnings reports.