Romanian Market Rebounds Following Pro-EU Presidential Victory
Romanian assets soared on Monday as a pro-EU centrist won the presidential election, alleviating investor concerns about a potential far-right turn. The leu rose 1.7% against the euro, and the stock index surged 4.1%. This shift comes after eurosceptic George Simion led in the first round, unsettling investors.
Romanian assets experienced a notable upswing on Monday after a pro-European Union centrist candidate emerged victorious in the presidential run-off. This result has alleviated investors' concerns about a possible shift towards a far-right political stance influenced by former U.S. President Donald Trump.
The Romanian leu appreciated by 1.7% against the euro, marking its strongest intraday percentage gain in over 16 years. Simultaneously, Bucharest's stock index made substantial gains, climbing by as much as 4.1%, positioning it for its most significant single-day percentage advance in more than three years.
The election outcome has sparked optimism, reversing recent bearish sentiments. Investors had previously reduced Romanian holdings after eurosceptic contender George Simion led in the first round. The result had posed threats to Romania's EU and NATO affiliations, impacting investor confidence and economic stability.
(With inputs from agencies.)
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