Don’t bank on a relief rally in the euro area anytime soon.
Markets are underpricing the prospect of Marine Le Pen emerging victorious in the French election as a sea of undecided voters throws into sharp relief pronounced apathy for center-leftist Emmanuel Macron — the front-runner by a whisker — and the backlash against the European Union project.
That’s the conclusion drawn by Charles Gave, founder of Hong-Kong based asset-allocation consultancy GaveKal Research, who predicted the triumph of Donald Trump in the U.S. election, and is now betting on a win for the anti-euro National Front candidate.
“Le Pen’s momentum is a slow-moving reaction against the men of Davos — as we have seen with Brexit and Trump — but markets don’t want to believe it,” he said by phone before the first round of the French poll on April 23.
The Emergency Election Sale is now live! Get 30% to 60% off our most popular products today!