Dutch Stocks Nudge Upward On Thanksgiving After Anti-Islam, Trump-Fan Geert Wilders Wins Elections

Dutch stocks edged 0.3% higher in Amsterdam, albeit in thinner trading conditions owing to the U.S. Thanksgiving holiday.

This reaction marked the first market test following the surprising victory of far-right anti-EU populist Geert Wilders in the Dutch elections.

Wilders, leading the Party for Freedom (PVV), stunned political observers by securing 37 seats in the Dutch parliamentary elections on Wednesday. This victory propels him into a crucial phase of seeking coalition allies to establish a government in the Netherlands.

Wilders’ Policies Put EU Stability At Test

Known for his admiration of former U.S. President Donald Trump and Hungary’s eurosceptic Prime Minister Viktor Orban, Wilders is openly anti-Islam and anti-EU.

He boldly declared, “The Netherlands will be returned to the Dutch.”

In the recent past, Wilders drew parallels between the Quran and Adolf Hitler’s Mein Kampf, advocating for a ban on the Quran in the Netherlands. Additionally, Wilders’ PVV promised to hold a referendum on Dutch membership in the European Union.

The road to forming a government in the Netherlands is likely to be a lengthy one, as it requires a majority in the parliament, which amounts to 76 seats.

Dutch bank ABN Amro stated in a note released on Thursday that a right-wing coalition comprising the PVV, VVD and NSC parties, which would collectively hold 81 seats, seemed to be the most probable outcome.

It’s worth noting that such a coalition would fall short of the 38 seats needed to control the Senate, which could potentially limit Wilders’ ability to push through his more extreme policy proposals.

Still, Wilders’ victory in the Dutch elections sent a clear warning signal to mainstream political parties across Europe. With the European Parliament elections scheduled for next June, it’s likely that similar issues such as immigration, climate change and pension reform will dominate the discourse, making it a pivotal event for the continent.

Market Reactions: Dutch stocks managed to weather the storm on the first trading day after Wilders’ victory. Although trading volumes were lower due to the closure of U.S. markets for Thanksgiving, the AEX stock index in Amsterdam posted a 0.3% gain, reaching a three-month high.

However, some individual stocks experienced mixed performance. Heavyweight chipmaker ASML Holding N.V. ASML closed 0.8% lower, while Dutch banks ING Groep N.V. ING and ABN AMRO BK N.V. AAVMY saw declines of 0.9% and 0.7%, respectively. On the other hand, energy giant Royal Dutch Shell SHELL rallied, posting a gain of 1.4%.

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