World stock markets hit record highs as Macron relief rally continues – business live

Global stock markets have hit their highest ever levels this morning, as relief over the French presidential election continues to sweep through trading floors.

The MSCI World Index – a broad measure of markets around the globe – has hit an all-time high today, for the second session running.

The rally is driven by expectations that Emmanuel Macron will become France’s next president, calming fears that the European Union could be dragged into another political crisis.

Shares have risen in Asia overnight, with the Japanese market gaining over 1%, and Hong Kong and India also up.

Investor are reacting to poll suggesting that Macron would comfortably beat his opponent, Marine Le Pen

Yesterday, European markets surged after Macron claimed a place in the run-off, with France’s CAC leaping by 4% to a nine year high.

Guy Foster, Head of Research at Brewin Dolphin, agrees that Macron looks highly likely to succeed Francois Hollande.

He says:

“Following the first-round election we are now in a crucial fortnight for France in which the impact of terror events, further WikiLeaks’ disclosures or potential scandals are multiplied by the fact that if Macron the centrist doesn’t win, Le Pen the extremist will.

Nevertheless, the chances of an Emmanuel Macron victory in the run-off election are very high indeed.

Michael Hewson of CMC Markets suggests that investors may be being too optimistic about Macron’s ability to change France.

Markets are surmising that Emmanuel Macron is a dead certainty to be French President in two weeks’ time, and while this is probably the most benign outcome at a time of rising populism it completely overlooks the challenges facing the new French President when he or she takes office on May 8^th.

For a start while Mr Macron is an outsider from the established political order, he will still be viewed by the majority of the 40% of French people who voted for anti-Euro candidates, as very much part of the same elite who he has helped to push to one side in this particular vote, which means he will be presiding over a country very much ill at ease with itself.

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

We’re about to discover how much Britain was forced to borrow to meet its financial needs last year, and whether it hit its targets.

At 9.30am, the Office for National Statistics publishes the public finance figures for March. That will show the deficit last month, and across the full 2016-17 financial year.

Last month, the Office for Budget Responsibility (OBR) forecast that government borrowing would hit £51.7bn this year. That was down from the £68.2bn forecast in November, and much better than the £71bn borrowed in 2015-16.

As of last month, Britain had borrowed around £47.8bn, implying that the nation will have tapped the markets for another £3bn or so in March.

With an election looming, the UK government will surely hail the figures as proof that it is getting the deficit down.

But, Britain’s total debt pile is still going up, of course – as there’s no prospect of an actual surplus in the next few years.

Mike van Dulken of Accendo Markets says:

Macro data this morning includes March UK Public Finances with net borrowing set to continue to rise following January’s seasonal drop on corporation tax receipts and accounting revisions.

Also coming up today…

Investors will be watching France closely, ahead of the presidential run-off between Emmanuel Macron and Marine Le Pen on May 7th.

In the City, hotels and coffee chain Whitbread, flooring company Carpetright, wealth manager St James’s Place and financial services group Virgin Money are all reporting results.