Market's holding its breath

STOCKS finished a volatile week more or less flat ahead of the French election and details of the Trump administration's tax plan. Of the two, political risk from France is arguably the more potent - some brokerages say it is the biggest risk to the post-2009 bull market - which means this week could see a relief rally, or perhaps even a crash, depending on the outcome of that election.

The leading candidate is Marine Le Pen, who has taken over leadership of her father Jean-Marie Le Pen's fascistic National Front party. Ms Le Pen recently received the support of another leader with trappings of far-right demagoguery, US President Donald Trump whose supporters hope to see his anti-immigrant stance validated by victory for Ms Le Pen.

Her rivals include Jean-Luc Melenchon, who is trying to capture some of the left-wing popular rage personified by Bernie Sanders in the US, and Francois Fillon, a former prime minister. Only two of the five major candidates can make it to the run-off election in May.