Goldman Sachs Group Inc. said Hungarian Prime Minister Viktor Orban’s re-election means “unpredictable” policies that risk weighing on growth, as the nation’s bonds suffer East Europe’s worst returns after Russia.
Hungarian Prime Minister Viktor Orban, who polls show is on the verge of winning re-election, undercut the bond market rally in his first term by surprising traders with moves including the seizure of pension assets.
Before European Union judges weigh in on the crisis bond-buying plan, Germany’s highest court will wrap up the final issues regarding the European Stability Mechanism, the other part of measures taken as a response to euro-area debt crisis.
Germany’s Aaa credit-rating outlook was increased to stable from negative by Moody’s Investors Service, which cited increased cooperation among European Union members to reduce economic contagion in the region.
Germany’s top constitutional court rejected efforts to block a permanent euro-area rescue fund, handing a victory to Chancellor Angela Merkel, who championed the 500 billion-euro ($645 billion) bailout facility.