European markets collapsed? Black swans caused a sharp drop in the stock market
There are risks in Europe that cannot be ignored. What should we do as traders? In the European Parliament elections last weekend, some countries' far-right parties rose, especially in France and Germany. This surprised people, although they performed well in recent polls. This prompted French President Macron to announce that the French elections would be brought forward to the end of June or early July. Although Macron's presidency is not affected, the parliament he is in is in crisis. He does not currently have a majority of seats. If the European Parliament elections are a harbinger, the French Parliament will most likely be controlled by the far right and push the far-right leader Le Pen to power. This will have a significant impact, not only meaning a major change in the European political landscape, but also affecting France's position on Russia and Ukraine. As traders, we must pay attention to this matter because it is crucial to the market. This will weaken the euro to a certain extent. As European countries have become increasingly divided, the first reaction triggered by the rise of these far-right parties is a massive sell-off in the French stock and bond markets, and other countries such as Italy are also implicated, and the euro is also sold off. A weak euro means a stronger dollar, and a stronger dollar may lead to a decline in the stock market, gold and silver, so we must pay attention to the situation in Europe
