Le Pen Win in French Elections Will Boost German Equities - JP Morgan
German stocks could become a safe haven for investors due to political risks in the EU and could rise significantly if Marine Le Pen pulls out a victory in the French presidential elections, say JPMorgan analysts.
“We believe German equities will be a relative safe haven within the euro zone into the election if uncertainty remains, and a clear winner in the case of a Le Pen win. German stocks strongly outperformed the rest of the region during the sovereign crisis of '11, when the euro collapsed, and peripheral spreads blew up,” JPMorgan's analysts said, as quoted by CNBC.
Traders seem to be increasingly concerned over the upcoming elections in the Netherlands, France, and Germany in the light of failing to forecast the effects evoked by Britain’s decision to quit the European Union as well as Donald Trump's US election victory.
Marine Le Pen, known for her anti-immigration views, currently leads in the latest opinion polls. The National Front leader has pledged to renegotiate the terms of France's membership in the EU if she is elected president.