Is Europe about to recover?

Pro-Europe candidate Emanuel Macron won the French presidential election, beating far right politician Marine Le Pen, who represented a threat to both regions and markets. Macron’s win reduced the risk in the securities market, which can entail an upsurge. What is more, the euro is also flying high after the French election. In March the Eurozone’s economic activity indicators reached a 6-year high, with Germany and France performing the best.

Meanwhile in the USA the positive market processes that had started after last year’s presidential election slowed down a little. The dollar started weakening quite rapidly, bond yields dropped and the stock market also became quieter. What about Hungary? The inflation rate neared the 3 percent target envisaged by the central bank (MNB). In the short and medium term it is unlikely that the increase in consumer prices will considerably exceed the central bank’s target, so the MNB may keep the base rate at the present 0.9 percent until 2018.