Markets give Mitsotakis vote of confidence, according to Handelsblatt

Just days after main opposition New Democracy won sweeping victories against ruling SYRIZA in both European Parliament and local elections, the German financial daily Handelsblatt is projecting a positive shift in investors’ stance toward the Greek economy based on the perception that a conservative government will be more business-friendly.

That expectation appeared to be demonstrated by the drop in Greek bonds’ spreads and the rally on the Athens Stock Exchange (ATHEX).

Investors buying Greek stocks

Noting the upcoming 7 July parliamentary elections, the paper reports that investors are already buying up Greek stocks as they view the electoral results to date as the prelude of a victory for conservative-liberal New Democracy.

The report notes that in the aftermath of the European and local elections the ATHEX broke its recent 830 point ceiling to reach 835 points, a 12-month high.

“The stock market party is a reaction to the result of the 26 May European Parliament election. Opposition New Democracy managed to win the contest by an unexpectedly large margin of around [nearly] ten percentage points…,” the analysis stated.

“After the great failure in the European Parliament election, [PM Alexis] Tsipras is trying to quickly ply forward and is expediting the general election, which will now be held on 7 July instead of the original plan to hold them in October,” the paper’s correspondent wrote.

“The chances of the climate changing until then are minimal. The opinion polls point to a clear victory for opposition leader Kyriakos Mitsotakis,” the report concluded.