Morgan Stanley characterized Sunday’s election results are encouraging for the Greek market, but only in the short term.

As the U.S. investment group explains in today’s memo, the political situation in Greece is complex. SYRIZA seems to be heading for the top party spot, but failed to secure a 4-6 percentage point lead over New Democracy, and condemn PASOK to a bad result, in order to cause early elections.

Morgan Stanley notes that there will be no national elections soon. However, it stresses that the majority of the government remains marginal at best, and is expected to be tested again next February, with the election of a President of the Republic.

Across Europe, Morgan Stanley does not exclude the “death of austerity” as a result of elections.