Shares of mining companies and other commodities processors rose as the dollar slid against the euro in the wake of the French election. The far-right, antieuro candidate Marine Le Pen made it through to the run-off, as anticipated, but her rival, Emmanuel Macron, is seen as the strongest alternative to Ms. Le Pen, both tactically and, from a market perspective, strategically.
Much of the weakness in cyclical sectors in recent weeks stemmed from fears that both Ms. Le Pen and Jean-Luc Melenchon, who criticized the euro from the left, would advance, jeopardizing the future of the European Union. As investors jumped back into the euro and out of the safety of the dollar, it was a sign of renewed risk appetite.
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Among the biggest beneficiaries were the copper mining companies and steel makers that are seen as the most susceptible to the vagaries of global growth rates. Gold futures, which were popular during the times of heightened political risk, fell to a two-week low.
Hunger for risk was whetted further late in the session after the Wall Street Journal reported that President Donald Trump would push for a 15% corporate tax rate.
(-By Rob Curran, firstname.lastname@example.org)
(END) Dow Jones Newswires
April 24, 2017 16:17 ET (20:17 GMT)