Effect French election on stock market and euro

Effect French election on stock market and euro, CAC-40 down april 23 2012, impact 2012 French presidential election : The French stock market is dropping and the euro is tumbling, raising questions about whether markets are nervous that France seems poised to elect Socialist Francois Hollande its next president.

But many analysts are cautioning against such a simple reading of Monday's slide. While polls predicted Hollande would come out ahead of President Nicolas Sarkozy in Sunday's first round, a strong showing by the far-right candidate adds an element of uncertainty.

Also, key surveys on Monday showed economic activity in both the eurozone and China fell, hurting stocks globally. The CAC-40 dropped 2.3 percent in early afternoon trading, while Germany's main index fell an even sharper 2.7 percent. The euro slid 0.4 percent.

Economists note that neither Hollande nor Sarkozy has a strong program for reforming France's economy

2012 French presidential election first round of voting yesterday, the 10 candidates to usher in a highly competitive test of voting. Compared with 5 before the last election, has gone through the baptism of the international financial crisis and debt crisis in Europe, France has undergone tremendous changes. France, economic growth rate of less than 1%, the credit rating is in the observation period, coupled with Europe’s debt crisis is a comeback, and economic issues will undoubtedly become the focus of the French presidential election, but also affects the market’s nerves.

French Constitution, the President is elected by universal suffrage, majority of two rounds of voting system “, a term of five. The first round of voting if no person have a majority of votes, the number of votes among the top two candidates proceed to the second round of contention, the votes will be elected president. At present, is recognized as the most influential is the current President Nicolas Sarkozy and the Socialist Party candidate Hollande.

analysts expected, during the French presidential election, the market speculation may increase, resulting in lower volatility of the stock market and the euro. No matter who is elected, the euro may not be good news.

George Soros recently said in an interview with the French media, “I have retired, if I am still an active investor in Europe to change leaders or change of policy, I will short the euro. “Soros bluntly pointed out, France is a dangerous place. European policy is clearly also rests in the hands of Germany. If Hollande win, he will be difficult to follow before the German, and questioned the French may impact on the financial markets.

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