Eurozone: Market focus on political developments – Danske Bank

Analysts at Danske Bank suggest that market focus this morning is on markets digesting political developments in the eurozone on Sunday.

Key Quotes

“In Germany, the SPD voted in favour (66% of votes) of a grand coalition with CDU/CSU, meaning a new government should be in place over the coming weeks. The development is positive for the German/French reform push and more accommodative fiscal policies, which is why the EUR gained ahead of the exit polls in Italy. At the time of writing, however, the EUR has erased its gains as projections suggest the Italian election will end with a hung parliament. The anti-establishment parties in Five Start and Northern League seem to be the winners complicating the process for a center-right coaliation to get formed. For more information, see our Italian Election Monitor – Eurosceptic shift released this morning.”