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.
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.
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.
A 3 1/2 year lobbying tour de force by Danish bankers and politicians is bearing fruit as Scandinavia’s smallest economy looks poised to persuade the European Union to sidestep Basel III liquidity rules.
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.