Left-Leaning Governments and Sovereign Spreads

France’s election outcome: coalition government, minority government or technical government? Without a clear absolute majority in the Assemblée Nationale, there is a risk of deadlock.

But this is not such a bad thing, especially for investors, as future legislative impasses should temper some of the left’s spending plans.

Not surprisingly, the French markets have turned higher since the second round of voting, but uncertainty will be the order for the next little while.

There is an observable connection between equity market returns and geopolitical risk.  Below are some links to some studies that have used our ICRG risk data to draw the connection.

(https://lnkd.in/gxz4rKH7)
(https://lnkd.in/dfhD6WQU)
(https://lnkd.in/e2am5Jad)

Our data drives.