It is fitting that just a few hours until the Fed's second rate hike in two quarters, and one day after Goldman downgraded global stocks to Neutral for the next 3 months, not to mention with the results of the anticipated Dutch election due shortly, that global stocks as well as S&P futures are higher, while crude oil has finally managed to stage a rebound as the Dollar DXY index is fractionally in the red.
Calling a spade a spade, the EU is a bloc on the verge of destruction. The process of disintegration has started and it is unstoppable. A multi-speed Europe is merely recognition of the reality. This is the time to say goodbye to the EU we once knew. A patchwork of clubs is emerging instead to change the European political landscape once and for all.
Europe, so many years after the Cold War, is ideologically divided into a new East and a West. This time, the schism is over multiculturalism. What Hungarian Prime Minister Viktor Orbán has termed "liberal babble" continues to govern Western Europe's response to the challenges that migration and Islamic terrorism have brought, especially to personal security.
The EU is facing an existential crisis and does not look like it will survive the massive political and financial challenges it is faced with. This has ramifications for investors in the EU itself and throughout the world.
European stocks declined for first session in five ahead of Wednesday's Dutch elections and Fed rate hike announcement. Fed concerns also dragged down Asian shares and S&P futures, while the dollar rose. Crude oil has ended its six-day drop. The pound tumbled 0.8% to the lowest since mid-January in a delayed reaction after Theresa May won permission to trigger the country’s departure from the EU.
"...the US Shale revolution will accelerate the breakdown of the global order as we know it, reshaping global geopolitics, leading to three major conflicts - Russia vs. Europe, Iran vs. Saudi Arabia & an Asian Tanker War"
With less than 48 hours until polling begins in the first major European election of the year, Bloomberg reports that snap polls show support for the anti-Islam, euroskeptic Freedom Party of populist Geert Wilders being re-energized after the last few days chaotic events surrounding Turkey.