French stocks closed lower Friday after a suspected terror attack in Paris just ahead of the country's presidential election vote, helping to leave the regional equity benchmark with a loss for the week. A gunman late Thursday opened fire on the Champs-Élysées boulevard in Paris, killing a police officer and wounding two others. Islamic State claimed responsibility for the suspected terror attack. The attack could give a late-campaign surge in support for anti-immigration, far-right candidate Marine Le Pen, analysts said. Le Pen on Friday urged the government to immediately reinstate French borders and expel foreigners monitored by surveillance.
The U.S. stock market has proved to be quite resilient in the face of multiple geopolitical threats and the next big event-France's presidential election-is likely to have a short-lived impact, according to analysts.
Global financial markets staged a relief rally after centrist French presidential candidate Emmanuel Macron won the first round of voting there and solidified his prospects of becoming France's next leader. The euro saw initial gains of almost 2% versus the dollar, hitting a five-month high, and more than 3% against the yen before pulling back. Other havens including gold and U.S. Treasurys sold off while S&P 500 futures gained 0.8%.
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