* European shares dip after widely anticipated Macron win
* Wall Street seen lower; Asia shares push world stocks to
* Focus seen shifting to economic fundamentals and ECB
* Euro hits six-month peak vs dollar before retreating
* Copper drops to four-month low as China imports slide
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Nigel Stephenson
LONDON, May 8 European stocks and the euro
pulled back on Monday from highs touched after pro-European
centrist Emmanuel Macron's emphatic but well-flagged victory in
France's presidential election as investors' focus shifted from
politics to monetary policy.
With the political risks that have dominated European
markets in a year packed with elections seen receding, the
European Central Bank is expected to have more room to tighten
policy as the euro zone economic recovery gathers pace.
Wall Street looked set to open modestly lower as index
futures, including those on the S&P 500, which earlier
hit a record high, traded slightly down on the day.
European equities dipped, with French shares, which hit 9
1/2-year highs on Friday, underperforming the wider market.
The euro dipped against the dollar, having risen in early
Asian trade to just above $1.10 when opinion polls signalled the
scale of Macron's victory over anti-euro nationalist Marine Le
It was a similar story in euro zone government debt markets:
the premium investors demand to hold French rather than German
benchmark 10-year bonds touched its tightest in six months as
markets opened on Monday, but then gave back some of that.
"Investors will now go back to the basics of watching the
underlying euro zone economic and inflation data and what
implications it may have for monetary policy," said Iain
Stealey, a fixed income portfolio manager for JPMorgan Asset
Although Macron's victory with his business-friendly vision
of European integration ensured there was no repeat of the
populist surges that saw Britain vote to leave the European
Union and President Donald Trump elected in the United States,
the result was widely expected and analysts had forecast no
major market moves.
That said, world stocks, as measured by MSCI's 46-country
world index hit a record high as the main
measure of Asia-Pacific shares, excluding Japan,
rose 0.8 percent.
Tokyo shares, resuming trade after a three-day market
holiday, closed up 2.3 percent at a 17-month high.
The pan-European STOXX 600 index was down 0.2
percent in afternoon trading, while France's CAC 40 index
fell 0.5 percent.
OIL, COPPER FALL
In currency markets, the euro rose to a six-month
high of $1.1024 in early Asian trade but last stood at $1.0955,
down 0.4 percent on the day.
"It's really a question now of what's going to happen next
with respect to the U.S. Federal Reserve with one rate rise
priced in between now and the end of the year, and what's the
probability that the European Central Bank will look to taper
monetary policy before the end of the year," said Michael
Hewson, chief markets analyst at CMC Markets in London.
The safe-haven Japanese yen, having earlier fallen to a
seven-week low against the dollar, also changed course and was
last up 0.1 percent at 112.58 per dollar.
The dollar index, which measures the U.S. currency against a
basket of its major peers, was up 0.2 percent.
The gap between 10-year yields on French and German
government bonds last stood at around
34 basis points. It rose as far as 38 bps before falling back to
The gap between yields in Germany and Italy,
which faces an election before May 2018, stood at 180 bps.
Yields on lower-rated southern European government debt,
seen most vulnerable to a reduction in the pace or scale of the
ECB stimulus that has suppressed borrowing costs, rose.
"We have the potential twin evils of Italy going to the
polls early next year and tapering to think about at the same
time," said Rabobank strategist Richard McGuire.
Oil prices, which hit almost six-month lows last week on
worries about a global glut of crude, dipped again as data
showing U.S. drillers added more rigs for a 16th successive week
outweighed the prospects of output cuts agreed by the OPEC
producers group and others being extended.
Brent futures fell 16 cents to $48.95 a barrel.
Gold, often sought as a bulwark against risk, rose
0.4 percent to $1,232 an ounce.
Copper prices fell 1.8 percent to four-month lows
around $5,490 a tonne as Chinese trade data showed April imports
of the metal dived 30 percent from a month earlier.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Hideyuki Sano in Tokyo and Abhinav
Ramnarayan and Ritvik Carvalho in London; Editing by Catherine
Evans and Richard Lough)