EU taking the spotlight with Italian elections soon - UOB

Analysts at UOB Group noted current events in the EU.

Key Quotes:

"The U.K economy expanded 0.5% in the 3Q, unchanged from preliminary estimate and in line with expectations.

On a year to year basis, growth is unchanged from estimate as well at +2.3%. In the just concluded Republican Party primary on Sunday, Francois Fillon is to be the conservative candidate in next year’s French presidential election after his rival Alain Juppe admitted defeat, winning nearly 67% of the vote. He is likely to face a Socialist candidate and the far-right’s Marine Le Pen in next April’s election.

In a Reuters poll of the upcoming 4-Dec Italian referendum, a “No” vote is likely to widen Italian/German yield spread by 25 bps and cause the EUR to fall 1.25% in immediate aftermath. In the event of a “Yes” vote, the yield spread is expected to narrow by 30 bps and the EUR to rise 1.5%."