Global markets showed marked enthusiasm regarding the prospect of Greece turning toward a more conservative route, following the New Democracy Party’s landslide in Sunday’s local and European Elections.
Greece’s ten-year bond lost more than nine percent since the day began, and is now at an all-time low of 3.08 percent, making Greece’s costs for borrowing the cheapest ever recorded.
In addition to this, the Athens Stock Exchange started the day on Monday with gains of more than 5 percent, adding millions of Euros to Greece’s corporate share values.
Shares of Eldorado Gold, the Vancouver-based company that has two operating mines and two development projects in Greece, rose as much as 14.6 percent on Monday.
The company has struggled with permitting delays at its Skouries location for years, mainly over environmental regulations. The country accounts for 42 percent of Eldorado’s operating net asset value, according to Desjardins.
“A political shift to a more pro-business climate has potential positive implications for the company’s outlook in-country,” Josh Wolfson, an analyst at Desjardins, wrote in a note, according to Reuters.
Global and Greek analysts predict that the New Democracy Party is set to win the snap elections which Prime Minister Tsipras announced last night.
The elections, originally planned to be held this autumn, are most likely to to take place either on June 30 or July 7, at the latest.
This development, combined with Kyriakos Mitsotakis’ pro-market and pro-liberal stance, gives hopes to global traders that Greece’s turn to the right will prove to be a positive development for the country’s economic prospects.