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Markets increasingly sensitive to European election risks

Yields of French and Dutch sovereign bonds are rising amid uncertainty over looming election outcomes

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Netherlands parliamentary elections are on March 15 and political analysts fear that the outcome could influence French voters; the euro has recently experienced a small revival, but remains depressed.

London

THE weakness of the euro and rising yields of French and Dutch sovereign bonds illustrate that markets are becoming increasingly uncertain about the nations' coming elections.

The euro, which has slid by 24 per cent against the US dollar and by 14 per cent against the

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