Fintech Web News brings you the latest in global bond trading market news so you can stay one step ahead of the shifts. Making the right decision starts with having the right data and ultimately relies on instinct as much as anything else. In order to hone your intuition, you need to be well informed about what’s going on around you and around the world.
What’s Happening In France?
In these uncertain times, it is hard to predict what will happen next even with the latest polling data. The lines between cause and effect are blurred by unexpected events such as Brexit and the election of Donald Trump. Both of these occurrences sent shockwaves through the financial markets and, just a short time ago, they would have been unthinkable.
It is this insecurity that has led to the sharp increase in French bond trading. The daily trading rate in February has been more than double the standard rate set in years past – €16 billion per day as opposed to the more usual €8 billion. This has been attributed to the forthcoming presidential elections. There is some possibility that far right-wing candidate Marine Le Pen could come to power.
Among Le Pen’s election promises, the possibility of France leaving the European Union looms large. A move, some say, that could sharply devalue the country’s credit rating and plunge them into financial chaos.
Detractors say that the possibility of Le Pen’s election is remote. However, the allure of change is strong. Voters can be swayed by that possibility alone if they view the current system as ‘not working’ for them in some way.
There are several strong indicators of fiscal uncertainty. The Financial Times reported that the difference between French and German bonds, judged the safest in Europe, hit a four-year high last week. While some say that Europe is well past its crisis point, the tendency of the market to react conservatively for protection is well-evidenced here.
Finding liquidity in the market in the coming months will be an even tougher challenge than before. This is why tools like Algomi’s Honeycomb are on the rise. They delve deeper into the levels of complexity to free up possibilities.