Spain: Politics in focus – Danske Bank
|Senior Analyst, Kristoffer Kjær Lomholt at Danske Bank, explains that it has been fairly quiet overnight and suggests that the market focus this morning is on Spain, as the regional elections in Catalonia showed a win for the pro-independence parties, with the three separatist groups winning a majority with 70 seats (68 needed).
Key Quotes
“The result is a big blow to Prime Minister Mariano Rajoy’s effort to contain the independence movement when he triggered Article 155 in October. Also, Rajoy’s People’s Party lost eight of its 11 seats, with unionists turning to Ciudadanos, which became the party most voted. The vote leaves political uncertainty as a continued market theme in Spain. Yet, the separatists’ democratic mandate to leave the rest of Spain remains weak. Market reaction has been fairly muted, with EUR/USD trading 25 pips lower. SPGBs are likely to suffer today but we doubt this will last long.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.