CKNW financial analyst Michael Levy says political developments in Europe Sunday will likely cause a severe downdraft in world stock markets come Monday.
France has elected a socialist leader – who promises more stimulus and less austerity – while Greece says it wants to re-negotiate its multi-billion-dollar international bailout.
“It’s going to take some of the confidence, more of the confidence, out of the euro. The euro was failing anyway, but with this problem in France, if this carries on, you could see France coming out of the euro. And if that were to happen, then the euro itself would fall apart.”
Levy adds Friday’s market dip anticipated the French vote results this weekend, but not to this severity.
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