According to Reuters: “Bonds, stocks brush off Eurosceptic election gains.”
Italian assets surged and German shares hit all-time highs on Monday as solid election showings by pro-European forces in both countries provided an antidote to Eurosceptic gains in France, the UK and Greece.
Though nationalists scored stunning victories in a number of weekend votes, Italy’s pro-European Prime Minister Matteo Renzi’s centre-left Democratic Party was on course for a resounding win over the anti-establishment 5-Star Movement of former comic Beppe Grillo.
For investors, it was a relief after pre-election polls had pointed to a much closer contest that would have raised fresh questions over the country’s ability to keep its already wobbly economic reform program on track.
Asian shares had also had a solid day, hitting one-year highs thanks to a strong session on Wall Street on Friday, and also helped by an apparently decisive win for billionaire Petro Poroshenko in Ukraine’s presidential election.
Reuters is so deep into the ‘European Project’ that it never occurred to them that a rise in European markets after shockingly (if you’re only a reader of Europe’s establishment press) strong gains by euro-skeptic parties might possibly be good for the economy. If markets went up, it simply must be that they weren’t paying any attention to these elections, which have been getting wall to wall press coverage from global media. They just can’t imagine the possibility that investors actually do read newspapers and watch TV news and liked what they saw.
On top of that, the tone set by Nerendra Modi, the new conservative Prime Minister of India, has been good for Asian markets, despite hysterical global press coverage about some alleged wave of anti-Muslim sentiment in India.
With India trending conservative, by my count now the whole Anglosophere is trending towards market parties with only two exceptions: South Africa and the United States of America.