A European Backlash
After a glorious British Bank Holiday Weekend, we get back to work today reeling from the Euro election results and wondering what Europe is going to do next.
The UK and US markets were both closed yesterday and although all other markets were open, trading volume was hugely reduced.
We are getting mortgage approval stats out of the UK this morning, which should be interesting as approvals have fallen in the last couple of months, and with new stringent tests in place it is seemingly becoming harder than ever to get a mortgage in the UK.
The main focus is on Europe at the moment. With the startling European Election results out this weekend, it has become clear that there has been a huge anti-austerity backlash and, in the words of the routed French President Francois Hollande, “Europe has overcome the economic crisis, but at what cost? Europe’s priorities must be growth, jobs, investment…”
Many would argue that the crisis is indeed over but attention is switching back to Mario Draghi and what he is going to do. Momentum for looser fiscal rules and more tolerance of public spending is growing.
Photo: © Niccolò Caranti / photopin