Daily Analysis: Stocks Surge to New Highs Following French Elections

Monday Market Recap

Asset Current Value Daily Change
S&P 500 2369 0.95%
DAX 12429 3.45%
WTI Crude Oil 49.32 -0.63%
GOLD 1272.00 -1.33%
Bitcoin 1244 -0.15%
EUR/USD 1.0863 1.37%


Global stocks are broadly higher after the favorable result of the French elections, as Macron and Le Pen made it to the second round, with the moderate candidate actually beating the far-right Le Pen, hinting on a fairly straightforward run-off in two weeks. European stocks led the way for global markets with the EURO STOXX 50 and the DAX both gaining more than 3%, while the Nikkei and the US indices are up by 2% and around 1% respectively.

The Euro shot higher, as investors remained their “doomsday” bets following the pro-EU results, and it hit a new 5-month high against the US Dollar above the 1.009 level in early trading. The common currency is up by around 2.5% against the Japanese Yen as safe-haven assets were sold. The Swiss Franc is faring better than the Yen, while gold is down by 1.5%, holding above the $1262 level for now. Oil opened the day higher, but it fell significantly later on, and WTI Crude is now back below the $50 per barrel level.

EUR/JPY following the French election, Daily Chart

Cryptocurrencies have a relatively calm day so far, as Litecoin is holding to its weekend gains, while last week’s star Ethereum Classic is up by double digits, getting close to the $4 level. Bitcoin is in a holding pattern below the $1250 level, as the markets awaits the test of the previous all-time high at $1290. Dash, Ethereum, Ripple, and Monero are still trading in their recent ranges stick in their ranges while NEM is creeping higher again, getting close to Monero in capitalization.

Ethereum Classic 4-Hour Chart Analysis

Technical Picture

The DAX soared back to the rising long-term trend channel after drifting out of it last week, and it quickly took out the previous high. The German index could be taking back its global leadership together with the Nasdaq as it is now close to its all-time high near the 12,500 level.  Support levels are found near 12,400, 12280, and between 12,150 and 12,200. The MACD just recovered above the 0 level, and more upside is possible if the benchmark remains above the prior highs.

DAX, 4-Hour Chart Analysis


Key Economic Releases on Monday

Time, CET Country Release Actual Expected Previous
10:00 GERMANY IFO Business Climate 112.9 112.4 112.3
14:30 CANADA Wholesale Sales (monthly) -0.20% 2.10% 3.30%
10:00 US FOMC’s Kashkari speaks


Key Economic Releases on Tuesday

Time, CET Country Release Expected Previous
10:30 UK Public Sector Borrowing 2.6 billion 1.1 billion
16:00 US CB Consumer Confidence 123.7 125.6
16:00 US New Home Sales 590,000 592,000
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

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