Investec's Ruane Comments On Dutch Election

March, 2017

Darren Ruane, Head of Fixed Income at Investec Wealth & Investment, comments on the recent outcome of the Dutch election:

“The results of the Dutch election helped to buoy investment markets following a better-than-expected outcome for mainstream parties. In particular, current Prime Minister Mark Rutte’s Liberal Party is projected to take 33 seats in the 150 seat lower house of parliament.

“The anti-Islam Freedom Party, led by Geert Wilders, is seen as a relative loser from the election. Prior to the election, the Freedom Party was a frontrunner in the polls in early January. Given that there is a lack of interest in both the Freedom party to form a coalition with other parties and vice-versa, the party’s policy influence should be limited. 

“In investment markets, European equities have risen by around 1% in early trade, although some of the optimism is follow-through from an expected US interest rate decision last night. Government bond yields in Europe are trading only marginally lower from overnight levels. Bond markets were forecasting a benign outcome from the Dutch elections, with a very strong gain for Wilder’s Freedom party required to disrupt markets in a meaningful way.”