Markets wrap: Macron's fade - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global Market Sentiment: Although sentiment in Europe was generally positive following Macron’s emphatic victory, the reaction in markets reflected position reduction with EUR, French stocks and Italian bond prices lower. European investors seem to be concerned about to the next potential political risk (French Assembly elections in June and Italy’s PD may push for early 4Q’17 elections). OPEC members suggesting extended and increased production limits lifted sentiment across the commodity sector.

Interest rates:  Italian BTP’s widened 7bps to core Europe (10yr 2.23%, Bund unch. at 0.44%) as markets mull Italy’s continued bank debt and potential elections. US 10yr yields rose 2bps to 2.37% in US trading on the back of Fed Mester and Bullard adding to the potential of further, if gradual, withdrawal of accommodation potential to taper the Fed’s balance sheet later in 2017.

Currencies: EUR continued to slide in European hours and USD managed general gains on position unwinding and soft commodity currencies (weaker Chinese import data more than offset OPEC members’ comments). EUR/USD -0.65% to 109.30, NZD/USD -0.20% to 0.6905, AUD/USD -0.55% to 0.7385 and GBP/USD -0.33% to 1.2940. JPY held steady to USD at 112.80."