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  
USD Bounces From Month Low

Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion...

Dollar index hit a new low

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211...

USD Hit Post Election Low

To date the dollar index has almost given up all of the post presidential election rally...


BoE Expected to Keep Rates Steady

ECB Governor Draghi will make a speech in the Dutch Parliament at 12:00 BST today. It will be Draghi first speech...

Trump's Tax Reform Plan

US Treasury Secretary Mnuchin announced Trump’s tax reform plan in a press conference...

Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...


Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...

Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

  


Share: