26 May 2014
Politics is theme at start of week - Rabobank
FXStreet (Guatemala) - Analysts at Rabobank explained that the markets will have a lot of politics to chew over today, especially given that it is Memorial Day in the US and a Bank Holiday in the UK so there are no key data to look at.
Key Quotes:
“European election polls show a surge in support for Eurosceptic parties on both the far left and the far right”.
“In France, the far-right Front National won 25% of the vote to the UMP’s 20%, while the ruling Socialists 15%; in Denmark the People’s Party (Eurosceptic) won 23.1% to the Social Democrats 20%; in Austria the Eurosceptic FPÖ won more than 20%; in Greece the far-left Syriza is set to top the polls while the extreme-right Golden Dawn will win 8-10%; and Britain’s UKIP looks to have comfortably won the most votes. Indeed, it appears only in Germany and the Netherlands did Eurosceptic parties fare badly”.
“All in all around a third of votes went to groups rejecting the European project. However, the market impact of this is likely to be relatively limited in the view of our European analysts. Importantly, Eurosceptic parties have a poor record of co-operating in Brussels while other parties will rally against a common threat; moreover, the vote increases pressure on the ECB to act in June – the promise of that extra liquidity is still likely to trump political scares”.
“In Ukraine billionaire Petro Poroshenko was elected president yesterday. That Moscow seems to recognize the result is welcome, but Poroshenko still faces the daunting tasks of reviving the economy and keeping his country unified. Meanwhile, Egypt also votes for a president today, and the former coup leader General El-Sisi seems certain to win by a landslide”.
Key Quotes:
“European election polls show a surge in support for Eurosceptic parties on both the far left and the far right”.
“In France, the far-right Front National won 25% of the vote to the UMP’s 20%, while the ruling Socialists 15%; in Denmark the People’s Party (Eurosceptic) won 23.1% to the Social Democrats 20%; in Austria the Eurosceptic FPÖ won more than 20%; in Greece the far-left Syriza is set to top the polls while the extreme-right Golden Dawn will win 8-10%; and Britain’s UKIP looks to have comfortably won the most votes. Indeed, it appears only in Germany and the Netherlands did Eurosceptic parties fare badly”.
“All in all around a third of votes went to groups rejecting the European project. However, the market impact of this is likely to be relatively limited in the view of our European analysts. Importantly, Eurosceptic parties have a poor record of co-operating in Brussels while other parties will rally against a common threat; moreover, the vote increases pressure on the ECB to act in June – the promise of that extra liquidity is still likely to trump political scares”.
“In Ukraine billionaire Petro Poroshenko was elected president yesterday. That Moscow seems to recognize the result is welcome, but Poroshenko still faces the daunting tasks of reviving the economy and keeping his country unified. Meanwhile, Egypt also votes for a president today, and the former coup leader General El-Sisi seems certain to win by a landslide”.