Just how confident is everyone about Europe now that Emmanuel Macron managed to trounce Marine Le Pen in a runoff that threatened to install a dancing Nazi in the French presidency?
Well, if you’re looking at equities, the most confident in history:
“Strong earnings in combination with subdued political risks, allowed European equities to record the largest inflow ever,” BofAML’s Barnaby Martin notes, adding that “the inflow was predominately via the ETF route; also the highest ever recorded.”
Meanwhile, in FX, one-week EURUSD implied vol fell for a fifth day, dropping Friday by as much as 24bps to 5.77 vols, its lowest since September. As Bloomberg wrote earlier today, “a drop below September 6 low at 5.38 vols will send the gauge to its lowest since 2014, when vols had sunk to record lows.”
Or, summed up…