For some reason, Europe’s largest stock markets have shrugged of election results in Greece and France. Many indexes are down, particularly in Greece. But, the markets the world watches most closely–those in France, England, and Germany–have sold off very modestly. The second trading day after the elections the FTSE 100 and Dax are almost flat. And, US markets, a side matter, mostly rose yesterday.
The reason for the lackluster movement may be that the effects of the elections were already “priced in”. Most experts expected the French results, although the Greek election surprised many. But, Greece, many experts now believe, is small enough not to matter much. There have even been conversions about it voluntarily leaving the EU, and doing so with little effect.
Douglas A. McIntyre