Spain’s weekend elections resulted in a comprehensive victory for the Popular Party, but newly elected Prime Minister Rajoy was quick to remind markets that quick fixes are not going to be forthcoming. With complete overhauls of both the Greek and Italian governments as well in just the last couple of weeks, there are already large expectations for these new administrations to come up with solutions to their respective debt problems. This seems like a tall order, especially with confidence already weak and investor patience quick to sour.
Adding to the unsavoury outlook in Europe, we are once again facing a week dominated by US politicking on the issue of cutting the fiscal deficit – a topic likely to echo the contentious and frustrating debate on the debt ceiling which we saw this summer. Given the scale of the structural cuts proposed, we expect concerns about the US growth prospects to resurface, in spite of the largely encouraging data seen last week.
Overnight, the Asian equity markets have traded slightly lower with the Nikkei -0.3%, Hang Seng -1.2% and Shanghai Composite roughly flat on the day. Looking ahead, the data calendar today is pretty light, with the main releases of note being the latest Swiss M3 money supply data, Eurozone current account, and US existing home sales.
By
M.Zohaib Gadit
Forex Tradind Consultant
Adding to the unsavoury outlook in Europe, we are once again facing a week dominated by US politicking on the issue of cutting the fiscal deficit – a topic likely to echo the contentious and frustrating debate on the debt ceiling which we saw this summer. Given the scale of the structural cuts proposed, we expect concerns about the US growth prospects to resurface, in spite of the largely encouraging data seen last week.
Overnight, the Asian equity markets have traded slightly lower with the Nikkei -0.3%, Hang Seng -1.2% and Shanghai Composite roughly flat on the day. Looking ahead, the data calendar today is pretty light, with the main releases of note being the latest Swiss M3 money supply data, Eurozone current account, and US existing home sales.
By
M.Zohaib Gadit
Forex Tradind Consultant
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