Marine Le Pen is ramping up the EuroSTOXX 50The European economy is showing clear signs of improvement. ECB Chief Mario Draghi said the European recovery was "resilient." The Eurozone PMI rose to its highest level in 69 months.
But the sentiment about Europe is turning bearish again. Why?
Listen to Bob Pisani, CNBC: "Yet there it was: The German DAX down 1.2% to a new low for the year, with the rest of Europe down as well. What gives? It's obvious that political fears are trumping economic optimism."
Why? Because the trading community knows they were wrong on Brexit, they know they were wrong on Donald Trump winning the White House.
Now they are beginning to realize that they could be wrong on the direction of European politics, and they are trying not to get surprised again."
Source: www.cnbc.com
And this is what traders needs to focus on:
European Voters feels threatened by Vladimir Putin in the East and Donald Trump in the West. Marine Le Pen made last Sunday probably a big mistake: She is trying to copy Donald Trump (Make France great again) and same time she is in favour for Vladimir Putin.
Maybe she might fall back behind Emanuell Macron earlier than epected because of this. The mistake Investors are making is probably that French and European Voters are also scared as investors are about any far right wing party. Germany´s AfD lost in 4 weeks only more than 40% of theire likely voters. The polls showing that the AfD falls back quickly from almost 18% to 10% only.
Expect the unexpected: European Voters turning more to those parties calling for a more united and stronger Europe.
If you have doubts about this than google what´s going on in Rumania right now.
