Initial kneejerk reaction to electoral results: Broad based de-risking
1) European equity futures down sharply but trimmed great deal of losses post open (DAX hit the hardest and still red, CAC modestly hit but now green, Italy and Spain modestly, Euro Stoxx down). Greek equity index -6.5%+, futures down 8%+.
2) TSYs rally but trimmed gains post European open. 10s Bunds, JGBs, CACs (surprisingly) all lower in yields.
3) Euro gapped 70pips lower, piercing 1.3 and currently filling gap. Broad Dollar strength initially; but poise lost post European open. Yen trimming gains against Dollar and FX carry.
4) PMs modestly down and little change even post intraday equity ramp and Dollar weakness.