Muted reaction to Spanish election

21 December, 2015

Despite the ruling Partido Popular losing its overall majority and the prospect of Greek style negotiations to form a coalition government the reaction from the markets has been muted with Spanish bond yields rising only a few basis points, the euro drifting sideways and European indices expected to open flat to slightly higher. Spain has come a long way since the height of the Eurozone crisis with unemployment declining from around 27% to 21% and it is now the fastest growing economy in the single currency block, but it has unquestionably benefitted from the ECB’s quantitative easing program being one of the main beneficiaries of its €60 billion a month bond buying program. In order to maintain its economic recovery it will need a government that is willing to continue much of the hard work that was undertaken in reducing the deficit and boosting competitiveness.

With Christmas celebrations on Thursday and Friday we can expect volumes to be low as we get closer to the end of the week. Today does see Eurozone consumer confidence released this afternoon and we have a busier economic calendar tomorrow and Wednesday. The low volumes could cause some volatility and we’ll see if some sort of Christmas rally can be mustered following what has so far been a very disappointing December for indices.


Source link  
Markets recede from the recent highs

A strong Nonfarm Payrolls caused pressure on the stock markets, reducing the chances of the interest rates lowering by the Fed in the upcoming months...

Gold resumes rally, pushing past $1400

Gold prices resumed a push higher on Monday, as flows into the precious metal continued on improved prospects for easier monetary policy from...

Gold rises as markets slip

Market caution continues to support gold. Quotes of this metal rose to $1337, repeatedly trying to push above this year highs at the 1340-1360 area...


Trump says Brexit should happen

President Donald Trump promised the U.K. a "phenomenal trade deal" Tuesday, on the second day of his state visit to Britain...

Euro and Gold instead of Dollar

Gold rose on Monday to the highest levels since February, reaching $1327 per ounce. In the first hours of the Tuesday trading session, there...

Markets recover after the drop

The markets decline on investors' fears that trade conflicts will drag on and slow down demand, and this dynamic coincided with breaking through important...


Markets pressured by Huawei problem

Alphabet and some other American IT companies have suspended business with Huawei, which is one of the first examples of major consequences for...

The climate is changing rapidly

British people need to fly less, drive electric cars, eat little meat and turn their home thermostats down to 19 degrees Celsius (66 Fahrenheit) in order to rein...

Chinese stocks saw their worst week

Chinese stocks have taken investors on a ride this year. Shanghai and Shenzhen have been the best performing global markets this year, with the Shanghai...

  


Share it on:   or