Western markets' 'relief rally' lifts local stocks

THE relief rally that engulfed Western markets on Monday after the first round of France's presidential election produced no shocks spread to this region on Tuesday, pushing the Straits Times Index 19.90 points higher to 3,163.93.

The broad market was firm with 272 rises versus 198 falls excluding warrants. Turnover improved from Monday's S$1.1 billion to S$1.2 billion with volume at 2.7 billion units.

Wall Street and Europe had rallied sharply overnight after news that the top two candidates after France's Sunday elections were the candidates the markets had hoped would win - Emmanuel Macron, who favours France staying in the European Union, and Marine Le Pen, who favours a "Frexit'' or exit from the Union. All polls show that in the May 7 run-off between the two, Mr Macron should win handsomely.