Anxiety rises as Fillon’s bid to win French election fades over payment scandal

Anxieties are on the rise across the European continent as well as in the market as the frontrunner Francois Fillon’s bid to win fades with an erupting payment scandal. Investors demanded a higher premium of as much as 60 basis points to hold the French 10-year bond compared to the German equivalent as the election uncertainties rise. The divergence reached the highest level since January 2014.

Polls had shown that the Republican candidate Francois Fillon could beat the dreaded far right candidate National Front leader Marine Le Pen in the second round of the election with a 60-40 margin. But latest numbers show that his poll ratings are declining for Mr. Fillon. This comes at a time, when the National Front leader, who has promised referendums on Euro, as well as the European Union are set to win the first round of French election, which will be held on 24th of April.

Mr. Fillon’s presidential bid faced a hard place after it got revealed that he used state funds to pay for his wife and children for fake jobs. However, Mr. Fillon’s owe is unlikely to benefit Ms. Pen but the independent candidate Emmanuel Marcon, who is now the favorite to beat Le Pen in the second round by a 65-35 margin.